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The UAE Is Closer To Issuing The Crypto Regulatory, According To The Regulator

According to the Securities and Commodities Authority, the United Arab Emirates (UAE) is moving closer to creating a regulatory and supervisory framework that will control the country’s virtual asset business.

The SCA, the UAE’s securities regulator, has stated that it is coming closer to “issuing the regulatory and supervisory framework related to virtual assets issued for investment purposes.”

Furthermore, the regulator revealed in a statement that it consulted “concerned authorities” throughout the establishment of the regulatory framework that handles the risks of money laundering and terrorism financing associated with “virtual assets and virtual asset service providers.” The statement goes on to say that such consultations have finished.

Meanwhile, the regulator stated that the framework was created to ensure that the country’s crypto industry follows the recommendations of the Financial Action Task Force (FATF). As a result, authorized exchanges “can apply for a license for virtual assets exchange subject to the approval and complying to all regulations and procedures of the Authority.”

Applicants from the two financial free zones, the Abu Dhabi Global Market (ADGM) and the Dubai International Financial Centre (DIFC), are exempt from this rule (DIFC).

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However, the statement adds that anyone who wants to start a virtual asset service provider (VASP) company must first get approval from the SCA. Furthermore, the SCA stated that VASPs with commercial licenses that provide any virtual asset services must comply with the SCA’s requirements. “to apply to the Authority to obtain the necessary license to practice such activity.”

According to the statement, these individuals must also “confirm” their obligation to comply with all anti-money laundering legislation.

While the SCA expresses its appreciation for all entities’ cooperation and participation, it warns that violations of the aforementioned regulatory and supervisory framework will result in the authority adopting appropriate legal and supervisory actions.