Dubai bans privacy coins like Monero under new crypto rules
Issuance of enhanced anonymity encryption is prohibited under the emirate’s new regulations for digital assets.
In Dubai, the issuance of anonymity-enhancing cryptocurrencies such as Monero (XMR) and all activities related to it are prohibited under new laws published on Tuesday.
The jurisdiction of the United Arab Emirates (UAE) has published its long-awaited encryption regulations,
which sets out the licensing and authorization requirements for virtual asset companies and issuers looking to operate in Dubai.
The new rules specify anonymity-
Promote cryptography as “a type of virtual asset that prevents the traceability of transactions or ownership history through distributed public ledgers and for which the [virtual asset service provider] does not have mitigating technologies or mechanisms to allow traceability or identification of ownership.”
Regulators in other jurisdictions such as Japan have also taken steps to ban privacy-enhancing encryption. The European Union is also considering banning tokens that hinder tracking.
“Obfuscation of money flows is a challenge to detect illicit activities,
“It is not surprising that regulators react so aggressively to these types of asset classes and mechanisms,” said Angela Ang, senior policy advisor at TRM Labs, a blockchain intelligence firm.
Cryptocurrency activities in Dubai are supervised by the Virtual Asset Regulatory Authority (VARA), which was set up last year.
The emirate is attracting crypto and blockchain companies to set up shop in Dubai.
