Dubai’s VARA sets sights on deanonymizing crypto whales: report

The Dubai regulator plans to introduce new rules forcing cryptographic companies to disclose the names of major holders.

Cryptographic investors holding significant sums in Dubai could soon reveal their identities to the authorities as part of a new thrust to protect consumers on the city’s growing virtual asset market.

The authority for regulating virtual assets provides for requiring approved crypto issuers and service providers to disclose the names of the main holders of Crypto, or “whales», Especially if most tokens belong to a creator or an institution. Vara boss, Matthew White, explained in a interview With the standard that this decision could help investors better understand the products they buy, because many tokens are controlled by third parties such as venture capital.

White has also noted that Vara will not necessarily require that specific people are named, as many cryptocurrency holders use pseudonyms and transactions are linked to wallet addresses, not real names.

The Vara Head believes that it is possible to disclose the big holders because the blockchain is clear and permanent, adding that the regulator also thinks of ensuring that investors obtain a “clear description of the risks”. Although the verification process has not been fully disclosed, the new requirements are part of Vara’s plans for the first quarter, most of them already in progress, said White.

The new rules follow a public warning from Vara about the promotions of the same. Crypto.News earlier reported That the regulator had warned investors on the risks linked to these tokens, including the manipulation of prices, liquidity problems and potential fraud, noting that they “lack intrinsic value” and are often motivated by trends deceptive social media and promotional tactics.