Dubai’s Virtual Assets Regulatory Authority (VARA) is making waves in the cryptocurrency world with its plans to deanonymize crypto whales, according to a recent report by Denis Omelchenko. The regulator is set to introduce new rules that will require crypto businesses to disclose the names of major holders in an effort to protect consumers in the city’s rapidly growing virtual asset market.

Crypto investors holding large sums in Dubai could soon find their identities revealed to authorities as part of this new push for transparency. VARA’s boss, Matthew White, explained in an interview with The Standard that the move is aimed at helping investors better understand the products they are buying, especially since many tokens are controlled by third parties like venture capitalists.

While VARA won’t necessarily demand that specific individuals are named, as many cryptocurrency holders use pseudonyms and transactions are tied to wallet addresses rather than real names, White believes it is possible to disclose big holders due to the clear and permanent nature of blockchain technology. The regulator is also considering ways to ensure that investors receive a clear description of the risks associated with their investments.

The verification process for disclosing major holders was not fully disclosed, but White mentioned that the new requirements are part of VARA’s plans for the first quarter, with most already in progress. This move comes on the heels of a public warning from VARA about meme coin promotions, where the regulator cautioned investors about the risks tied to these tokens, including price manipulation, liquidity problems, and potential fraud.

Overall, Dubai’s VARA is taking proactive steps to regulate the cryptocurrency market and protect investors from potential risks. With the city’s growing prominence as a hub for virtual assets, these new rules could have a significant impact on the industry and set a precedent for other regulators around the world.