The federal securities regulator in the United Arab Emirates (UAE) will begin accepting applications from companies wishing to provide cryptocurrency services in the country, according to an announcement last Monday.
All digital asset service providers in the country – except for companies already licensed to operate in the UAE’s free economic zones – must apply for approval to the Securities and Commodities Authority (SCA). The licensing regime was approved by the SCA last Monday, following a UAE Cabinet decision taken in 2022 to regulate the cryptocurrency sector.
Dubai’s embrace of the regime
Some of the seven emirates, including Dubai and Abu Dhabi, already have licensing frameworks in place for cryptocurrency companies, and the local industry is embracing the Dubai regime.
Companies wishing to operate in the Emirate of Dubai must also be licensed by the Digital Asset Regulatory Authority (VARA), in addition to SCA approval, and will need to demonstrate “operational efficiency and flexibility” and meet the operational standards rules that have been set.
Modifications to the legislation
Some amendments have also been made to the “digital asset rulebook” from 2022. Financial activities such as brokerage and custody of digital assets, as well as a new category of digital asset service providers, have been added to the legislation.
“A person wishing to conduct digital asset activities must be domiciled in the state to conduct his business under one of the legal forms approved by local authorities regarding commercial licenses,” the regulation dictates.
READ NEXT
- UK to Regulate Cryptocurrency Industry Within a Year, Says Treasury Secretary
- What is the future of blockchain and crypto: Trends, Challenges, and Opportunities
- How EHP Technology Improved the Effectiveness and Efficiency of Radiators for Optimal Use
- Elon Musk’s Twitter and eToro team up to allow users to trade stocks and crypto
- FTX Rises from the Crypto Ashes with $7.3B Recovery
Previous Articles:
- UK to Regulate Cryptocurrency Industry Within a Year, Says Treasury Secretary
- What is the future of blockchain and crypto: Trends, Challenges, and Opportunities
- Step into the Future: Metaverse Development Is Changing the Way We Live Online
- How EHP Technology Improved the Effectiveness and Efficiency of Radiators for Optimal Use
- Exclusive “FREQ” NFTs To Release In 3D and Augmented Reality on ElmonX
