LONDON: Dubai鈥檚 Virtual Assets Regulatory Authority (VARA) announced on Tuesday that it would become the world鈥檚 first regulator to enter the metaverse.

The authority will establish its metaverse HQ in the virtual world 鈥淭he Sandbox,鈥� an ethereum blockchain-based application backed by Japanese investment conglomerate SoftBank, that allows users to create, sell and purchase digital assets.

VARA said in a statement that its move into the metaverse is an attempt at making the regulator 鈥渁ccessible to its industry in their environment, and facilitate collaborative engagement between global Virtual Asset Service Providers, Industry Thought-leaders, and International Regulatory Authorities.鈥�

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Established by Sheikh Mohammed bin Rashid, vice president and ruler of Dubai, VARA is governed under the Dubai Virtual Asset Regulation Law, the first law in the emirate that regulates virtual assets.

The expansion into the metaverse is part of Dubai鈥檚 strategy to create a prototype decentralized regulator model.

VARA also aims to make the model accessible to government and industry leaders, other authorities, and virtual asset service providers to help shape the future digital economy, The Executive Office said in a statement on Tuesday.

VARA鈥檚 MetaHQ will reportedly serve as the primary channel to engage global virtual asset service providers to initiate applications, welcome new licensees, share expertise and drive worldwide interoperability. 

The MetaHQ will 鈥渆nable the dynamic virtual assets sector to build economic resilience, accelerate social inclusion and address environmental sustainability,鈥� said Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum, the crown prince of Dubai.

鈥淥ur presence in the metaverse, therefore, marks the beginning of a new phase in the Dubai government鈥檚 march for the future, one that will have a positive impact in the long run.鈥�