• The Virtual Asset Regulatory Authority (VARA) in Dubai recently released guidelines for virtual asset service providers (VASPs).
• These guidelines included a ban on privacy coins, which have stirred up responses from the crypto community.
• Christopher Goes, co-founder of privacy protocol Anoma, said that the ban demonstrates a lack of consideration for the public and their basic human right to privacy.
The Ban on Privacy Coins in Dubai
The Virtual Asset Regulatory Authority (VARA) recently provided the much-awaited guidelines for virtual asset service providers (VASPs) in Dubai, United Arab Emirates. Included within these guidelines is a ban on privacy coins. This news has sparked some response from both market participants within Dubai as well as a privacy protocol project.
Effects of the Ban
Khaled Moharem, president of the Middle East at blockchain-based payments ecosystem WadzPay, said that while this news didn’t come as a surprise due to similar indications from other regions, more time is needed to fully assess the implications of this new development. He also added that digital currencies such as Bitcoin and Ethereum are not untraceable and are subject to certain Know Your Customer and Anti-Money Laundering measures which help prevent funds being used for illicit purposes.
Christopher Goes’ Response
Christopher Goes, co-founder of privacy protocol Anoma pointed out that privacy is a basic human right and argued that this ban demonstrates a lack of consideration for the public. He believes it should be respected by all governments regardless of where they are located or what industry they are involved in.
Other players within Dubai have yet to give their opinion on this matter but their initial assessment shows that issuance will be banned due to traceability reasons. It remains to be seen if there will be any further changes or amendments made to these regulations as time passes by.
The recent announcement by VARA regarding its regulations on virtual assets has left many people with mixed feelings about this ban on privacy coins in particular. While some may agree with it due to traceability reasons, others disagree because it reduces their basic human right to privacy without giving them an option otherwise. It’s clear that more discussion needs to happen before people can come together and reach an agreement about how best to move forward with regards to these regulations in order for everyone involved can benefit from them equally