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

Dubai’s regulator is planning to introduce new rules requiring crypto business to disclose names of large holders.

Crypto investors holding large sums in Dubai could soon have their identities revealed to authorities as part of a new push to protect consumers in the city’s growing virtual asset market.

The Virtual Assets Regulatory Authority plans to require licensed crypto issuers and service providers to disclose the names of major crypto holders, or “whales,” especially if most tokens are owned by a creator or institution. VARA’s boss Matthew White explained in an interview with The Standard that the move could help investors better understand the products they are buying, as many tokens are controlled by third parties like venture capitalists.

White also noted that VARA won’t necessarily demand that specific people are named, as many cryptocurrency holders use pseudonyms and transactions are tied to wallet addresses, not real names.

The VARA head believes it’s possible to disclose big holders because blockchain is clear and permanent, adding that the regulator is also thinking about making sure investors get “clear description of risks.” While the verification process wasn’t fully disclosed, the new requirements are part of VARA’s plans for Q1, with most already in progress, White explained.

The new rules follow a public warning from VARA about meme coin promotions. Crypto.news earlier reported that the regulator had cautioned investors about risks tied to these tokens, including price manipulation, liquidity problems, and potential fraud, noting they “lack intrinsic value” and are often driven by social media trends and misleading promotional tactics.