Dubai Regulator Enters the Metaverse with Sandbox HQ
- On Tuesday, Dubai’s Virtual Assets Regulatory Authority (VARA) announced its entry into the Metaverse.
- VARA becomes the first regulatory authority to enter the metaverse, delivering The Sandbox (SAND) price support.
- Technical indicators are bearish, with SAND sitting below the 50-day EMA.
Today, Dubai Regulator entered the Metaverse. This year, Metaverse interest has failed to support The Sandbox (SAND), despite increased virtual activity. Bearish sentiment from the broader crypto market saw SAND slide to an April 30 current-year low of $1.84 before finding support.
While mainstream industries have embraced Web3, regulators have been less supportive. An increase in illicit activity led to calls for greater regulatory oversight.
This week, the Emirates bucked the trend, with Dubai’s regulator embracing the Metaverse.
The Virtual Assets Regulatory Authority Goes to the Metaverse
On Tuesday, the Dubai regulator, the Virtual Assets Regulatory Authority (VARA) announced a move into the Metaverse.
According to today’s announcement published on Emirates news agency WAM,
“Dubai’s Virtual Assets Regulatory Authority (VARA) announced its entry into the Metaverse with the establishment of its Metaverse HQ in the dynamic virtual world of The Sandbox.”
The report goes on to say,
“As the world’s first regulatory to make its debut in the Metaverse, VARA seeks to ensure that the regulator is accessible to its industry in their environment, and facilitate collaborative engagement between global Virtual Asset Service Providers (VASPs), Industry Thought-leaders, and International Regulatory Authorities.”
Crown Prince of Dubai and Chairman of Dubai Executive Council, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum said,
“Dubai maintains a leading position at the forefront of technological transformation. We have exceeded the role of an early adopter to become an innovator and participant in shaping the future of this technology.”
He went on to say,
“Today, VARA joins the Metaverse to become Dubai’s – and the Metaverse’s – first government authority, ushering in a new era in which Dubai Government utilizes modern innovations to extend its services and regulatory power to audiences in an open technological expanse, without constraints or borders.”
SAND Price Action
At the time of writing, SAND was up 3.74% to $2.19. A bullish start to the day saw SAND hit a morning high of $2.30 before easing back. Today’s news of Dubai regulator entering the Metaverse with an HQ in The Sandbox delivered support.
SAND will need to avoid the $2.10 pivot to break back through the First Major Resistance Level at $2.20.
Broader market sentiment will need to improve to avoid sub-$2.15.
In the event of an extended rally, SAND should retest the Second Major Resistance Level at $2.28 and resistance at $2.30. The Third Major Resistance Level sits at $2.46.
A fall through the pivot would bring the First Major Support Level at $2.02 into play. Barring another extended sell-off throughout the day, SAND should avoid sub-$2.00. The Second Major Support Level sits at $1.92.
The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. SAND sits below the 50-day EMA, currently at $2.32. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also pulled back from the 200-day EMA, SAND negative.
A move through the 50-day EMA would bring $2.40 into play.