History in the metaverse – The United Arab Emirates (UAE) continues to reaffirm its interest in web3 technologies. In this race, Dubai is not behind. Blockchain, cryptocurrencies, metaverse: the kingdom keeps pace. Now it’s the government’s turn to set foot in the metaverse. VARA, the regulatory body, will take the first step by settling into the pixelated universe of The Sandbox.
A regulator at The Sandbox
Let’s look at VARA first. A government agency in Dubai, the regulator’s mission is to provide a “safe operating environmentin the meta-verse. In doing so, by reaffirming its interest in a virtual social space, Dubai intends to support the development of the blockchain:
“Virtual assets are an integral part of the digital economy of the future. ».
VARA official press release
The Dubai government thus wants to allow the blockchain industry to get involved in it. Members with a VARA license will therefore be able to develop safely in The Sandbox:
“(…)VARA joins the metaverse to become the first state authority in Dubai – and Metaverse – heralds a new era in which the government of Dubai uses modern innovations to expand its services and regulatory power (…) VARA represents a serious effort for to build a powerful new economic sector that contributes to the national economy and creates new investment opportunities. This is possible thanks to the safe and modern regulation solutions that we envisage. Our presence in the meta-verse therefore marks the beginning of a new phase in the march of the Government of Dubai into the future; one that will have a long-term positive effect. “
His Highness Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman of the Executive Council
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Quite concretely VARA META HQ, Regulator Headquarters will open its virtual doors in The Sandbox. Still, according to government statements, it is therefore up to His Highness to place Dubai as the capital of fintech and blockchain:
“ Dubai maintains a leading position at the forefront of technological transformation. We have moved beyond being an early adopter to become an innovator and a participant in shaping the future of this technology. »
But what will be VARA’s mission in the meta-verse? The regulator wants to offer a decentralized and safe commercial area for everyone. The basic principles are clear:
“ (…) secure cross-border interoperability, informed investor adoption, market protection prioritization and industry responsibility. ”
” Governance’s guardian and industrial creators VARA will offer state and government participation in exchanges, which provides regulation in the meta-verse.
The questions of economic freedom then arise. Because regulation in advance may seem to go against any form of decentralization.
VARA META HQ already intends to answer these questions by placing itself in development and support. Meta HQ then has the following missions:
- reach out to private sector actors and offer them a legal framework
- create a safe social space
- provide access to consumer products
- become a trusted intermediary with VASPs (PSAN equivalent in France)
- offer promising young developers the opportunity to develop in a secure virtual world. They will then be able to share their knowledge and create awareness among as many people as possible.
In addition, the presence of the regulator offers the government a new way of generating revenue. Helal Saeed Almarri, CEO of Dubai World Trade Center Authority, says:
“VARA’s acquisition of land in the sandbox is a symbol of our confidence in this sector, and it is our responsibility as a government to be the bridge that allows investors and consumers to safely adopt and scale the collaborative economy. In addition to generating direct economic benefits and accelerated GDP for Dubai, VARA sees this as the first step towards shared learning. “
The approach proposed by the Dubai government is avant-garde. Some questions remain unanswered, especially the questions about the availability of this metaverse to the public and the rules that will govern it. VARA’s approach is still remarkable: it’s the first. Dubai confirms the trend and looks set to become one new eldorado for blockchain and metaverse companies.
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