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How do new generation techno-legal firms provide compliance and regulatory assistance to corporates in UAE

With the recent disruption in the fintech and virtual assets space, many conventional lawyers are moving towards the latest edition of law, famously known as Law 2.0

Dubai over the past few years has taken the lead in creating a safe and favourable environment for cryptocurrencies and other virtual asset businesses across the world. Dubai’s latest addition to promote the virtual assets industry has been the establishment of an independent regulatory body specifically for the evolving virtual assets industry known as VARA (Virtual Assets Regulatory Authority). It aims to regulate the industry by bringing in regulatory framework, facilitating responsible innovation and protecting investors and other market participants.

Various legal advisory firms in the UAE started navigating through the complex industry, its associated risks, regulatory and compliance requirements as well as licensing requirements that VARA has established for firms that wish to operate in Dubai as a ‘Virtual Assets Service Provider’. Many company formation agents have rushed towards VASP’s to help them obtain the appropriate license. They usually fail to realise that merely helping virtual assets businesses with a license they think they need is not enough. Their lack of knowledge about the field and legal landscape results in an unfavourable outcome for the virtual asset business.

However, there have been several prominent names in the field of regulatory and legal compliance across the UAE. “We have been in the industry since the inception of cryptocurrencies and other virtual assets. It is very important for legal advisory firms across the globe to have an in-depth knowledge regarding the virtual assets field and that’s something conventional lawyers should work on," says adv P M Mishra from Finjuris Counsel FZ-LLC, UAE. They are an international legal advisory firm that specialises in white collar crimes, blockchain and cryptocurrency, real asset tokenisation, financial licenses, venture capital funds, fintech and crowdfunding.

Ever since VARA’s inception, techno-legal firms have played a key role in assisting virtual assets businesses and cryptocurrency projects and have helped them navigate through the arena and required compliances along with licensing requirements. Understanding and interpreting VARA’s virtual assets regulation is not an easy task. It needs a great deal of expertise in the global virtual asset scene in order to provide tailor made solutions to the clients. Technology centric legal firms have been successful in making corporates across the UAE compliant in accordance with the existing law and regulations that are being laid out by regulators. From licensing till compliance, all the requisite conditions of the regulatory authorities are being met.

How can techno-legal firms assist you differently from conventional law firms?

New generation legal advisory firms provide regulatory compliance services regulations to help virtual assets businesses navigate complex legal and regulatory frameworks in various industries, including fintech and cryptocurrencies. Here are some common regulatory compliance services offered by them pertaining to the industry:

Regulatory Analysis and Advisory: Law 2.0 firms assesses the regulatory landscape relevant to VARA and other regulatory authorities along with client's business operations. They provide guidance on how to comply with existing laws and regulations and stay updated on regulatory changes.

Compliance Audits: Legal experts conduct regular compliance audits to ensure that your virtual assets business is adhering to the latest regulations and best practices, reducing the risk of regulatory violations.

Licensing and Registration: They can guide you through the process of obtaining the necessary licenses and registrations required to operate a virtual assets business in Dubai. This may involve dealing with government agencies and regulatory bodies.

Risk Management: They can assist in developing risk management strategies to address potential legal and financial risks associated with virtual assets, such as market volatility, cybersecurity threats, and regulatory changes.

Intellectual Property: If your virtual asset business involves proprietary technology or intellectual property, legal experts can help you protect your IP rights through patents, trademarks, and copyrights.

Data Privacy: Virtual asset businesses often deal with sensitive customer information. Legal professionals can help you navigate data privacy laws and ensure compliance with regulations related to data protection and security.

Government Liaison: If you need to engage with government authorities or regulatory agencies, legal professionals can help facilitate communication and represent your interests in discussions or negotiations.

Due Diligence: If you plan to partner with other businesses or investors, legal professionals can perform due diligence to assess the legal and financial risks associated with such partnerships.

Keeping Abreast of Changes: The legal landscape for virtual assets is dynamic and can change rapidly. Legal professionals stay updated with the latest legal developments and can provide timely advice to ensure your business remains compliant.

Given the evolving nature of the virtual asset industry and the potential legal complexities involved, it's highly recommended to work closely with experienced legal professionals who have expertise in both blockchain technology and the legal framework of Dubai. They can provide tailored advice based on your specific business model and objectives.