The United Arab Emirates is about to open a virtual asset license application process for those companies and service providers with crypto assets interested in establishing a base within the country.
Authorities in the United Arab Emirates have announced that companies wishing to offer cryptocurrency and virtual asset services in the country will be able to apply for a regulatory license this year.
The regulatory license will allow companies to operate under a clear regulatory framework overseen by the Securities and Commodities Authority (SCA).
Through this licensing process, UAE regulators want to foster innovation and development in the country’s financial and technology sector, while also ensuring the protection and stability of investors and consumers involved in the crypto industry.
Building a regulatory framework for innovation and development
According to a Press release According to a recently published SCA notice, virtual asset companies and service providers, called VASPs, operating in the Emirates are required to apply for a regulatory license with the authority, with the exception of those crypto asset companies and service providers that are licensed in the free zones.
The aim of this regulation is to protect cryptocurrency investors and users, as well as prevent money laundering and terrorist financing, and promote innovation and development in the financial sector.
Companies will be required to comply with the requirements for the prevention of money laundering and terrorist financing, as well as with international standards established by the Financial Action Task Force (FATF).
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Last year, the country's Prime Minister, Sheikh Mohammed bin Rashid Al Maktoum, announced the creation of a new regulatory framework to oversee trading activity with crypto assets, in addition to the establishment of a Virtual Assets Regulatory Authority as a body tasked with regulating and supervising crypto-asset-related activities and businesses in the emirate/city of Dubai. VARA will help Dubai become a global innovation hub friendly to the cryptocurrency and blockchain technology industry.
UAE supports innovation in the crypto industry
The United Arab Emirates has positioned itself as a regional and global leader in the field of cryptocurrencies and digital assets, with initiatives such as the creation of Free zones specializing in cryptocurrencies in cities such as Dubai, the issuance of licenses for virtual asset service providers (VASP) and participation in international cooperation and integration projects.
The country is creating a crypto-friendly environment to attract global companies and institutions operating within this sector, as well as investors and consumers interested in this asset class.
The issuance of regulatory licenses for VASPs reflects the Emirates’ commitment to innovation, transparency and security in the cryptocurrency and virtual asset market.
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