UAE Opens Doors to Crypto Firms with New Licensing Rules and Digital Asset Oasis
Crypto companies seeking to operate in the United Arab Emirates can now apply for licenses from the Securities and Commodities Authority (SCA), subject to new regulations approved by the SCA's board of directors.
To comply with the new licensing rules, firms must adhere to codes of business conduct that include integrity, transparency, protecting consumer assets, and limiting the trading of certain products to specific customers.
Minimum capital requirements apply, and the SCA can request additional documents from firms while complying with the Financial Action Task Force’s anti-money laundering guidelines.
The SCA’s licensing requirements apply to all emirates except economic free zones and Dubai. Crypto firms in Dubai must register with the Virtual Assets Regulatory Authority (VARA), which recently tightened its licensing requirements.
Binance, the world’s largest exchange, delayed plans to offer trading in Dubai through its Binance FZE entity, while other firms, such as Komainu, Hex Trust, and Crypto.com, have received licenses.
READ MORE: Trader With Huge Gains in The Crypto Market Sets His Sight on This Altcoin
The Ras Al Khaimah Digital Assets Oasis, which will open in Q2 2023, is a free zone dedicated to digital assets and is linked to the recently established Department of the Future.
The SCA will work with the central bank to enforce the new regulations that came into effect on January 15, 2023.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
