1. What is VARA?

VARA (Dubai Virtual Assets Regulatory Authority) primarily relates to its regulatory responsibilities concerning tokens rather than being a type of token itself. Here is an introduction to VARA:

• VARA's Responsibilities: VARA is an autonomous entity in Dubai responsible for regulating virtual asset services, including monitoring trading activities, preventing price manipulation, and ensuring the protection of personal data.
• Regulatory Scope: VARA regulates the issuance, provision, and disclosure of virtual assets and non-fungible tokens (NFTs), and collaborates with other federal agencies to develop ethical guidelines and policies.
• Licensing and Registration: Any entity providing virtual asset services in Dubai must obtain a license from VARA and operate within Dubai, holding a trade license issued by relevant commercial authorities.
• Violations and Penalties: Entities violating the new virtual assets regulatory law in Dubai may face penalties and fines, including a suspension of VARA authorization for six months or a complete revocation of authorization.
• AML/CFT Compliance: VARA is responsible for overseeing anti-money laundering (AML) measures and combating the financing of terrorism (CFT) for virtual asset service providers (VASPs) and virtual asset activities.

In summary, VARA is a regulatory authority and not a type of token. Its main responsibility is to regulate and manage virtual asset services in Dubai.

2. Who founded VARA?

VARA (Dubai Virtual Assets Regulatory Authority) was not founded by an individual; it was established by the Dubai government as a regulatory authority responsible for supervising virtual asset service providers (VASPs) and virtual asset activities in Dubai. It was established in 2022 under Law No. 4 of Dubai, aiming to provide legal clarity and a regulatory framework for tokens in Dubai.

3. Which venture capitals invested in VARA?

According to the provided search results, there seems to be no direct mention of which venture capitals invested in Tokens VARA (Dubai Virtual Assets Regulatory Authority). VARA is a regulatory authority and not a type of token that can be invested in.

However, the following points may relate to your inquiry:

1. VARA Regulatory Rules: VARA announced that companies promoting digital asset investments in Dubai must prominently display a disclaimer stating, "Virtual assets may depreciate completely or partially and are subject to significant volatility."

2. Venture Capitals Investing in Token-related Projects: Although VARA is not directly mentioned, some venture capitals have invested in token or digital asset-related projects. For example, Hillhouse Capital and Shunwei Capital invested in the AI-driven virtual life technology service provider Huiye Technology, Huayi Brothers invested in the metaverse entertainment sector, and Lenovo Capital, BlueFocus's Blueprint Haixing Fund, and WeLink Times invested in digital humans.

Please note that this information is not directly related to VARA's regulatory rules but pertains to investment activities in the token and digital asset space.

4. How does VARA operate?

VARA (Dubai Virtual Assets Regulatory Authority) is an independent entity within the United Arab Emirates (UAE) responsible for regulating and licensing virtual asset (VA) activities in Dubai. Here is how VARA operates in the token space:

1. Regulatory Framework: VARA develops and implements the “2023 Virtual Assets and Related Activities Regulations,” providing a comprehensive regulatory framework for virtual asset businesses to ensure transparent and secure operations.

2. Licensing and Regulation: VARA is responsible for licensing and regulating financial activities related to virtual assets, including consulting services, brokerage and prop trading services, custody services, exchange services, lending services, payment and remittance services, as well as VA management and investment services.

3. AML/CFT Compliance: VARA is responsible for overseeing the anti-money laundering (AML) measures and combating the financing of terrorism (CFT) for virtual asset service providers (VASPs) and virtual asset activities.

4. Marketing and Promotion: VARA requires all market participants to comply with regulations regarding marketing, advertising, and promotional activities, including prominently displaying a disclaimer stating, "Virtual assets may depreciate completely or partially and are subject to significant volatility."

5. Licensing Process: VARA's licensing process includes a tiered approval structure, which involves obtaining a provisional license, submitting documents for initial licensing of the minimum viable product (MVP), obtaining an MVP operating license, and acquiring a full product license (FMP).

6. Cooperation and Coordination: VARA collaborates with other domestic financial regulatory bodies, including the UAE Central Bank and the Securities and Commodities Authority (SCA), to ensure a unified regulatory approach and prevent regulatory overlap and inconsistencies.

In summary, VARA promotes the safety and sustainable development of the Dubai virtual asset market by establishing a clear regulatory framework, licensing and regulating virtual asset activities, ensuring AML/CFT compliance, regulating marketing and promotional activities, and cooperating with other regulatory authorities.