Dubai has set out regulatory requirements for crypto companies operating in its jurisdiction, mandating that they obtain relevant licenses and authorizations.

The Virtual Assets Regulatory Authority (VARA), set up last year to oversee the sector, published extensive rules on Tuesday that cover various aspects of operations, such as cyber security, compliance, and risk management.

The rules also address specific activities like issuance, advisory, custody, and exchange services.

VARA aims to develop a model framework for global economic sustainability within a borderless and innovation-centric environment.

Dubai, the most populous emirate in the United Arab Emirates, has big ambitions to become a regional fintech hub and is seeking to attract crypto and blockchain companies.

Although some companies have claimed to have obtained VARA approval, no company has been reported to have a license from the watchdog yet.

Regulators worldwide are racing to establish crypto supervision in the wake of the collapse of high-profile digital asset exchanges and lending platforms after last year’s market crash.

Dubai’s new framework, which still needs final approval, covers advertising and promotion requirements for crypto firms and is part of a global trend towards establishing licensing regimes for the industry.