UAE’s monetary watchdog introduced on April 17 that it has begun accepting functions from firms in search of a digital asset service supplier (VASP) license.
The UAE Cupboard established a framework to control the crypto trade in December 2022 after passing Decision 111.
Beneath the brand new regime, all firms trying to present companies associated to digital belongings within the nation should register with the nation’s monetary regulator and safe a VASP license.
Nevertheless, corporations working inside Dubai’s monetary free zones are exempt from having to use for a VASP license for now.
SCA
The Securities and Commodities Authority (SCA) was appointed to oversee the crypto sector within the UAE, which has traditionally held a pro-crypto stance and stays on the forefront of regulating the rising trade.
Its oversight can have minor overlap with the Digital Property Regulatory Authority (VARA), which is able to proceed to be answerable for crypto corporations working in Dubai and its monetary free zones just like the Dubai Worldwide Monetary Centre (DIFC).
The VASP license will deliver firms underneath the SCA’s internet, which is able to mandate them to stick to numerous regulatory necessities associated to enterprise disclosures, operational integrity, client safety and transparency.
The SCA stated firms should flip over any and all paperwork and information requested through the licensing course of and will likely be topic to disclosure necessities.
If an software is rejected, firms can have the choice to enchantment the choice.
Moreover, the SCA will regulate all cryptocurrencies and digital belongings used for funding functions. Nevertheless, this won’t embrace digital belongings used for cost functions, which is able to fall underneath the central financial institution’s purview, in line with the regulator.
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