United Arab Emirates’ (UAE) federal financial regulatory authority has unveiled that it’ll begin accepting licensing applications for firms related to virtual asset services, as stated by Cointelegraph.
According to Cointelegraph, Securities and Commodities Authority (SCA) stated that all country-based virtual asset service providers (VASPs) will be required to get a license from the regulator. It’s believed that those licensed in the country’s financial free zones will be spared. Reportedly, digital asset companies present within Dubai’s emirate will be required to follow the virtual asset services authority (VARA).
Based on information by Cointelegraph, UAE’s Cabinet announced resolution number 111 of 2022, based on providing an “attractive investment, economic and financial environment for global companies and institutions operating in the virtual assets sector.“ SCA highlighted that the resolution intends to “ensure the protection of investors’ funds in virtual assets from illegal practices.”
“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,” SCA concluded.
(With insights from Cointelegraph)