March 13 UAE legalizes NFT and non-fungible token trading
The technical revolution is also beginning to touch some Arab countries, led by the United Arab Emirates. Recently, His Highness Sheikh Mohammed bin Rashid Al Maktoum, in his tweet, initiated the steps to legalize NFTs. This decision comes after the popularity of cryptocurrencies first and their tyranny over the virtual world, and then the popularity of non-fungible tokens or NFTs.
First… What is NFT?
NFT is an acronym for Non-Fungible Tokens. It is a set of things that you can own the intellectual property rights to on the blockchain network. It is popular in the public eye in the form of images, but NFT can be anything. The goal of an NFT is to own a set of things on the blockchain that might have real value in the future, or that others have to pay to get the rights to use. The closest description, for example, if you have music that owns the intellectual property rights on the blockchain, then others can only listen to it after you pay, for example. NFT has recently become so popular that the United Arab Emirates, along with many other countries, have begun to legislate and regulate.
United Arab Emirates launches VARA unit in Dubai
In his official tweet on Twitter,Mohammed bin Rashid Al Maktoum, Ruler of Dubai, explained the launch of the VARA unit. It is a unit created with the purpose of legalizing and regulating the exchange of virtual assets, especially the NFT. This is in order to gain transparency in the purchase, trade and exchange of NFTs between users, and to generally legalize them for everyone. And even facilitate the buying and selling of the general public. Many entities and sectors in Dubai will cooperate in this project to make it a success.
Why is it necessary to legalize or monitor and regulate NFT?
Recently, the popular platform OpenSea stopped NFT purchases for a short time and then sent a notification to all users that there were NFT-related scams. Furthermore, many NFT companies do not respect the proprietary rights of their original members. Someone had previously created Minecraft characters and sold them on the platform for millions of dollars, not respecting the standards of game creators and developers and giving them the rights to their characters, so the buyers withdrew the money and defrauded him in a major. NFT fraud.
On top of all this, the NFT sector is very active in tax evasion and financial fraud. Many people with unstable income, smuggling and money laundering, put special pieces of their design at luxury prices, and then buy them back at the same price, as a kind of money laundering. All of these issues required a group of parties to immediately step in to legalize the NFT deal to prevent this type of rampant fraud.
The first Emirates… who will be next?
The United Arab Emirates may be the first in the world to legalize NFT dealing, knowing that the number of traders in the country is weak compared to other Arab countries. According to the latest statistics, Egypt and Morocco occupy the first places, despite the ban on operating with cryptocurrencies within them. While Saudi Arabia, the United Arab Emirates and Qatar, which legalize the trading of cryptocurrencies, occupy positions after the tenth place. Therefore, this move may be practical in the UAE to encourage people to hold digital assets in the form of NFTs. The United States of America is still in its early steps to first legalize Bitcoin before legalizing NFT, so we can say that the UAE has made an imaginary leap in this framework.