Eternity Law International News Dubai Blockchain Policy

Dubai Blockchain Policy

July 6, 2021

This Policy sets forth certain rules regarding the use of blockchain in government transactions that apply to Dubai government authorities, blockchain networks and the private sector.

Scope of application

This Policy applies to those government authorities in Dubai that want to form a new blockchain network, actively use the blockchain, or become part of an existing blockchain network, as well as to representatives of the private sector wishing to join the government blockchain network of Dubai or the blockchain platform. In addition to all of the above, the Policy applies to blockchain networks and platforms created, hosted or affiliated with Dubai government bodies.

The provisions of this Policy must be adhered to by all relevant stakeholders. The City Office of Smart Dubai (SDO) should align its activities with the Emirate’s blockchain strategy in order to strengthen support for a more successful implementation of the Blockchain Policy across the UAE.

Network creation

Blockchain networks for government agencies that are created in Dubai must obtain approval from the SDO, which for its part is committed to ensuring the effectiveness and efficiency of the blockchain networks created in this way throughout the government.

SDO is granted the right to assume certain functions, in particular:

  • monitor the compliance of the prevailing blockchain networks that are subject to this Policy;
  • to approve the formation of a new blockchain network after the assessment of supporting documents that such organizations must provide;
  • appoint and reassign network operators who manage government blockchain networks;
  • appoint a committee or a number of regulatory representatives for a specific sector or important stakeholders in order to oversee the creation of the public blockchain network and implement governance decisions.

Intellectual property rights

Blockchain operators and government authorities in Dubai are encouraged to clearly define and address ownership and all related other intellectual property rights that are shared, developed in relation to or associated with the blockchain. Data ownership and other intellectual property rights that are in any way related to the data must be further processed and determined in accordance with the provisions of the Dubai Data Law and Data Policy.

Data confidentiality

All blockchain networks covered by this Policy, and participants in such networks, are required to comply with the provisions regarding data privacy as outlined in the Dubai Data Law and other relevant policies. They must classify all data transmitted over blockchain networks in accordance with the rules of the Data Classification Framework – Dubai Data Establishment (DDE). The procedure for maintaining the confidentiality of data must be strictly observed under all conditions, in particular, no personal information can be recorded directly into the blockchain network. In order to transfer your data through the blockchain network, you need to obtain permission from legal entities and individuals, and this procedure must be performed in accordance with all Dubai data policies.

Communication and acceptance

All blockchain networks that are subject to this Policy are required to publish and maintain a communication plan containing a detailed description of the blockchain services provided over the network, future plans and a roadmap.

Smart contracts

All blockchain networks that are subject to this Policy and use smart contracts to automate legal obligations or for other legal application must ensure that all such contracts are legally verified and are technically reliable so that they are fully compliant the requirements set out in existing regulations and laws. All parties to the contract must have access to the smart contract. In addition, the contract must be converted into English or Arabic. Digital signatures of each of the parties must be provided after digital identification and direct agreement with the terms of the contract from all parties.

Public interest

Dubai government agencies, private companies, SDOs, important stakeholders and other stakeholders that are subject to this Policy should also pay attention to the public interest and the safety of the public when using blockchain. In particular, the parties listed should strive for the following:

  • taking measures to protect the safety and health of the population;
  • supporting transparency and accountability;
  • ensuring the protection of consumers and other beneficiaries;
  • allowing intergovernmental cooperation;
  • helping to provide more efficient and better quality public services;
  • support and protect important academic, technological and economic sectors;
  • maintain the infrastructure of the Emirates;
  • take measures to prevent crime.

Summing up

The UAE has always strived to take the leading position in the world in the field of technological advances. The country quickly adopted and implemented binding regulations, recognizing the potential of the newly discovered technology formats and creating a possibility to obtain crypto-license in a respectful jurisdiction. A transparent way of maintaining the registry and blockchain technology is still at an early stage and not fully implemented, however, the rules in force at this stage require all users to consider carefully the procedures set out in the laws and remember them.

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