The federal securities regulator in the United Arab Emirates will begin accepting applications from businesses wishing to offer crypto services in the country, as was announced earlier this week.
All virtual asset service providers in the nation, excluding those that currently hold a license in one of the financial-free zones operated by the United Arab Emirates, are required to apply for clearance with the Securities and Commodities Authority, according to the aforementioned release.
A decision to regulate the cryptocurrency industry was made by the UAE Council of Ministers last year, and the SCA reportedly authorized the aforementioned licensing scheme on Monday. It is important to note that the SCA began to regulate the industry earlier this year.
Additionally, some of the seven emirates, such as Dubai and Abu Dhabi, already have operating license regimes for crypto businesses. The adoption of Dubai’s recently disclosed regime by the local industry brought these frameworks to light.
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Crypto Businesses that Will Enter the Emirate of Dubai
According to the aforementioned notice, crypto businesses aiming to enter the Emirate of Dubai must also have SCA permission and a license from the Emirate’s Virtual Assets Regulatory Authority. Businesses seeking licenses will need to show “operational efficiency and flexibility,” as well as adhere to specific operational criteria.
Virtual Rule Book Amendments
According to the news, the virtual asset rule book will undergo changes starting in 2022, as noted in the same statement. The aforementioned legislation now encompasses financial actions like virtual asset brokerage and custody, as well as a new class of virtual asset service providers.
According to the aforementioned rule, “A person wishing to engage in virtual-asset activities shall have headquarters in the State to conduct his business, according to one of the legal forms approved by the local authorities concerned with commercial licenses.”