Making Waves in Virtual Assets & Micromobility

We round up the latest legislation paving the way for virtual assets and a new program to promote cycle and scooter safety in Dubai.

By Xische Editorial, April 27, 2022

Source: EvathemeMarket / Envato

Fresh off the heels of the World Expo 2020 and the World Government Summit, Dubai has announced a slew of new laws aimed at digital assets and quality of living updates. These laws once again demonstrate how the Emirate is pushing forward with profound changes designed to ensure that Dubai is one of the most innovative cities in the world. Despite the gloom in the global economy and concerns about a possible recession, Dubai is a bright spot in progressive governance and innovative design. 

Last month, Sheikh Mohammed bin Rashid Al Maktoum issued the Dubai Virtual Asset Regulation Law, establishing a legal framework to protect investors and implement international standards for virtual assets (VA) industry governance. This legislation is critical to ensuring that Dubai remains on the cutting edge of the digital asset revolution taking place around the world. According to Gulf Business, the new laws will help organize the issuing and trading of virtual assets and virtual tokens and service providers and establish safeguards for users and their personal information. The new law outlines  activities subject to government  authorisation including operating and managing virtual assets platforms services, exchange services between virtual assets and currencies, whether national or foreign, exchange services between one or more forms of virtual assets, virtual asset transfer services, virtual asset custody and management services, services related to the virtual asset portfolio, and services related to the offering and trading of virtual tokens. 

You might be reading this and thinking that this is all bland regulatory language but it’s not. As the recent downturn in cryptocurrency markets has shown, this type of legislation is critical for maintaining a healthy crypto sector. Around the world, crypto platforms are folding and sometimes leaving investors without their funds. The new laws are designed to prevent such a thing from happening in the UAE. Few other countries are taking these steps and the decisions will prove critical in the future. 

When the markets rebound from the current crisis, investors are going to move their assets to countries that have clearly defined legislation that protect investors and platforms alike. These laws are making the UAE into one of the most attractive countries for this type of investment. But the new laws haven’t stopped there. There was also some important news about bikes. 

Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai, also announced a new resolution regulating bicycles and e-bikes in Dubai. The resolution is a critical step in Dubai’s efforts to transform itself into a bicycle-friendly city and promote the usage of bikes around the Emirate. We have been big fans of bikes for a long time. 

The most attractive feature of bikes in the urban environment is with micromobility trends. As we wrote in 2018, we continue to see great potential in micromobility. As cities add dockless bikes and scooters, they create demand that didn’t previously exist. New cyclists and scooter users create pressure for better parking and bike lanes, which results in a positive feedback loop by attracting more users, who create more pressure for infrastructure, and on and on. In the past, this feedback loop has benefited drivers, but momentum may finally be shifting to more active forms of mobility.

The rise of micromobility services such as bicycles and e-bikes demonstrate that technology is not always the solution to urban challenges. City planners, residents, and urbanists need to be pragmatic in their approach to the urban landscape and understand basic human psychology. Sometimes the easiest solution – which, in this case, is having more bicycles – is the best. The new laws Dubai announced might seem to address different sectors, they demonstrate how Dubai is constantly tailoring its legal environment to maintain the best living standards. From digital assets to e-bikes, Dubai is staying one step ahead of the curve.