Dubai bans trading of Monero, Zcash and other privacy coins

Dubai’s Virtual Asset Regulatory Authority (VARA) has banned all activity involving privacy coins such as Monero (XMR) and Zcash (ZEC).

Regulators have also implemented certain rules for the local cryptocurrency sector in an effort to position Hong Kong as an “international hub for virtual assets.”

Dubai's new policy

Recently Announced documentDubai, the financial capital of the United Arab Emirates, has banned trading in anonymous digital assets such as XMR and ZEC.

The local watchdog also laid out the licensing requirements that cryptocurrency companies must go through before expanding into the region.

The most fundamental principles include anti-money laundering obligations, marketing protocols, preventing insider trading, and monitoring whether the asset class is being used for criminal activity. Angela Ang, senior policy adviser at blockchain intelligence firm TRM Labs, commented:

“Opacity in capital flows makes it harder to detect illicit activity, so it's no surprise that regulators are reacting strongly to these types of asset classes and mechanisms.”

The updated regime aims to provide maximum security for local consumers and establish Dubai as a global hub for blockchain technology. The regulator previously granted provisional licenses to Binance and Crypto.com to offer services in the region, and allowed FTX to set up its regional headquarters.

The United Arab Emirates' largest airline – Emirates – Displayed It intends to accept Bitcoin as a form of payment and use blockchain technology to track aircraft records.

Another example of Dubai's support for cryptocurrencies is the luxurious five-star hotel Palazzo Versace Dubai. approved Customers can pay for accommodation, spa services, food and beverages with digital currency. Supported assets are Bitcoin (BTC), Ether (ETH) and Binance Coin (BNB).

It's not just Dubai

Japanese authorities banned the use of privacy coins such as Monero (XMR), Zcash (ZEC) and Dash (DASH) in 2018 due to concerns that criminals would use such tokens for illegal activities.

Several major exchanges have also delisted the assets from their platforms, with Bittrex doing so at the beginning of 2021 without giving any particular reason.

Huobi Global suspended trading of seven privacy coins (including XMR and ZEC) in September 2022 “in compliance with the latest financial regulations.”

This article was originally published on: February 8, 2023