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 measures to legalize NFTs. This decision comes after the popularity of cryptocurrencies first and their dominance in the virtual world, then the popularity of non-fungible tokens or NFTs.
First...what is an NFT? NFT is an abbreviation for Non Fungible Tokens. It is a collection of things that you can own intellectual property rights to on the blockchain network.
They are popular in the public domain in the form of images, but NFTs can be anything. The goal of an NFT is to own a group of things in the blockchain network that could have actual value in the future, or others would have to pay to obtain the rights to use them. The closest description is, for example, if you have music whose intellectual property rights are on the blockchain, then others cannot listen to it unless they pay you, for example.
NFTs have become so popular recently that the United Arab Emirates, along with many other countries, have begun to legislate and regulate them. The UAE launches the 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 that was created for the purpose of legalizing and regulating the exchange of virtual assets, especially NFTs.
This is in order to obtain transparency in purchasing, trading and exchanging NFTs among users, and to legalize them in general for everyone. And even facilitate their sale and purchase among the general public. Many entities and sectors in Dubai will cooperate in this project to make it a success.
Why does NFT need to be legalized or monitored and regulated? Recently, the famous OpenSea platform stopped NFT purchases for a short period, then sent a notification to all users that there were NFT-related scams. In addition, many NFT works do not respect the property rights of their original owners.
A person had previously made Minecraft characters and sold them on the platform for millions of dollars, without respecting the standards of the game makers and developers and giving them the rights to their characters. Thus, money was withdrawn from buyers and defrauded in one of the largest NFT frauds. In addition to all of this, the NFT sector is very active in tax evasion and financial fraud. Many people with unstable income, smuggling, and money laundering deliberately sell special pieces of their design at ridiculous prices, then buy them back at the same price, as a form of money laundering.
All of these matters required a group of parties to intervene immediately to legalize dealing with NFTs to prevent this type of rampant fraud. The first Emirates... who will be next? The UAE may be the first in the world to legalize dealing with NFTs, noting that the number of traders in the country is weak compared to other Arab countries.
According to the latest statistics, Egypt and Morocco come first despite the ban on dealing in cryptocurrencies within them. While the Kingdom of Saudi Arabia, the Emirates, and Qatar, which legalize dealing with cryptocurrencies, come in positions after tenth place. Therefore, this move may be practical in the UAE to encourage people to own digital assets in the form of NFTs.
The United States of America is still in its first steps to legalize Bitcoin first before legalizing NFTs, so we can say that the UAE has made an imaginative leap in this context.
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