Regulation: Dubai puts its foot in The Sandbox metaverse

History of the metaverse – The United Arab Emirates (UAE) continues to confirm its interest in web3 technologies. In this race, Dubai is not behind. Blockchain, cryptocurrencies, metaverse: the kingdom goes on. Now it is the government’s turn to tread on the metaverse. VARA, the regulatory body, will take the first step by settling the pixelated universe of The Sandbox.

A regulator of The Sandbox

Let’s look at VARA first. A Dubai government body, the regulator’s mission is to provide a “safe operating environmentin the metaverse. In doing so, by confirming its interest in a virtual social space, Dubai seeks to support the development of the blockchain:

“Virtual assets are an important part of the future digital economy.”.

Official press release of VARA

The Dubai government therefore wants to allow the blockchain industry to interact with it. So members with a VARA license can safely upgrade to The Sandbox:

“()VARA has joined the metaverse to become the first Dubai government authority – and the Metaverse – ushered in a new era where the Dubai government is using modern innovations to expand its services and regulatory powers (.. .) VARA represents a serious effort 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 regulatory solutions we have in mind. Our presence in the metaverse therefore marks the beginning of a new phase of the Dubai Government’s march in the future; one that has a long -lasting positive effect. ”

His Highness Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman of the Executive Council

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tangible VARA META HQ, Regulator Headquarters will open its virtual doors to The Sandbox. Still according to government statements, it is for His Majesty to position Dubai as the capital of fintech and blockchain:

Dubai maintains a leadership position at the forefront of technological innovation. We go beyond being early adopters to be an innovator and a participant in shaping the future of this technology. »

But what then is VARA’s mission in the metaverse? The regulator wants to offer a decentralized and safe commercial space for everyone. The basic principles are clear:

(…) Secure cross-border interoperability, informed investor adoption, market protection priority and industry accountability.

Management keepers and industry molders VARA will offer state and government participation in exchanges, providing metaverse regulation.

Questions of economic freedom arise immediately. Because regulation can, a priori, seem to be contrary to any form of decentralization.

VARA META HQ is already intended to answer these questions by placing itself in development and support. Meta HQ then has the following missions:

  • reaching out to private sector players and offering them a legal framework
  • provide a safe social space
  • providing access to consumer products
  • be a reliable intermediary of VASPs (equivalent to PSAN in France)
  • offers promising young developers the opportunity to thrive in a safe virtual world. They can share their knowledge and raise the knowledge of as many people as possible.

Moreover, the presence of the regulator offers the government a new way to generate revenue. Helal Saeed Almarri, Managing Director of the Dubai World Trade Center Authority, says:

“VARA’s acquisition of Sandbox land is a symbol of our confidence in this sector, and we as a government need to be the bridge that allows investors and consumers to safely adopt and measure the collaborative economy. to generate direct economic benefits and accelerate 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, particularly regarding the accessibility of this metaverse to the general public and the rules that govern it. The VARA approach remains unique: it is the first. Dubai proves the trend and seems to be the new eldorado for blockchain and metaverse companies.

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