The UAE Securities and Commodities Authority (SCA)has mandated all crypto service providers (VASP) to apply for licences and register. The requirement does not apply to holders of free-zone licences.
Crypto firms seeking to begin providing services in the UAE may file the relevant applications with the SCA.
VASPs operating in Dubai Emirate will require obtaining licence VARA.
Under the government decree, the SCA is charged with obligations to “ensure the protection of investors’ funds in virtual assets from illicit actions”.
Under the Authority’s mandate, virtual assets used in payments are not within its remit. They fall under the local central bank’s purview.
The SCA does not have authority to regulate firms registered in free zones.
In February 2023, Ras Al Khaimah’s government announced plans to create RAK Digital Assets Oasis for digital asset companies.