Dubai is tightening its regulations on cryptocurrency transparency, with new rules aimed at exposing the identities of major token holders, often referred to as "crypto whales." The move is part of the emirate's strategy to combat market manipulation and provide more clarity in the growing digital asset sector. Matthew White, CEO of the Virtual Assets Regulatory Authority (VARA), stated that the regulations will require crypto businesses to disclose the ownership structures of large token holders to improve market transparency and reduce manipulation risks.

While the rules aim to enhance investor confidence, the challenge lies in the pseudonymous nature of cryptocurrency transactions. Most crypto transactions are recorded under wallet addresses rather than real names, making it difficult to trace individuals behind significant holdings. Despite these obstacles, White believes blockchain technology will help regulators track large asset movements and identify potential market manipulation, even if real identities are not fully revealed.

In addition to crypto whale disclosures, VARA is working on other regulations to improve market stability, such as requiring asset issuers and crypto service providers to disclose reserve compositions and undergo independent audits. These measures are designed to prevent sudden market crashes and boost investor confidence, with White confirming that implementing these regulations is a priority for VARA.

Dubai continues to position itself as a global hub for the crypto industry, attracting major firms and issuing licences to crypto businesses. VARA's efforts are part of the emirate's broader vision to become a leading financial and technology hub by 2030, and with clear regulations in place, Dubai hopes to provide regulatory certainty that will encourage market growth and stability.

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