The federal financial regulatory company of the United Arab Emirates (UAE) has introduced that it’s going to begin receiving licensing applications for corporations that need to present digital asset providers inside the nation.
The Securities and Commodities Authority (SCA) mentioned in a press launch that every one digital asset service suppliers (VASPs) working within the nation should submit an software and acquire a license from the regulator, with the exemption of these licensed within the nation’s financial free zones.
Meanwhile, digital asset firms working inside the emirate of Dubai will nonetheless need to adjust to its personal financial regulator, the digital asset providers authority (VARA). These firms should additionally apply for and acquire a license from VARA.
On Dec. 11, 2022, the UAE’s Cabinet issued decision quantity 111 of 2022, which regulates digital belongings in an try to supply an “attractive investment, economic and financial environment for global companies and institutions operating in the virtual assets sector.“
The SCA officially announced that it’s undertaking the tasks of regulating and supervising the virtual assets sector pursuant to the cabinet resolution on Feb. 1. According to the SCA, the resolution aims to “ensure the protection of investors’ funds in virtual assets from illegal practices.”
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The SCA added that the decision applies to all transactions associated to digital belongings for funding functions, together with the non-financial free zones within the nation. However, the regulator additionally specified some limitations. They defined:
“Its provisions do not apply to virtual assets that are used for payment purposes, as they are subject to the jurisdiction of the Central Bank. They also do not apply to financial free zones.”
On Jan. 13, UAE-based blockchain lawyer Irina Heaver spoke with Cointelegraph to elucidate the implications of the brand new federal digital asset legislation. According to Heaver, failure to adjust to the brand new legislation may end in financial fines of as much as 10 million AED ($2.7 million), disgorgement of earnings and prison investigation by the general public prosecutor.
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