The Securities and Commodities Authority (SCA) in UAE is reportedly in the final stages of finalizing the legislation that would allow virtual asset service providers (VASPs) to establish themselves in the country, reported Bloomberg. A national crypto licensing legislation would help UAE with its goal to become a leading crypto-friendly jurisdiction.
The regulators are working on framing crypto license legislation.
The UAE regulators reportedly considered the Financial Action Task Force (FATF) guidelines and ongoing crypto policies in the United States, United Kingdom, and Singapore for framing its crypto license legislation. The new crypto license would reportedly take a hybrid approach where the chief regulatory body would handle regulations in consultation with the central bank while local financial institutions could develop their own native license guidelines. Apart from the crypto license for VASPs, the government is also planning on building and regulating the crypto mining industry.
The UAE government has been working on making the country crypto and blockchain-friendly.
UAE regulators have been working towards formulating laws that would pave the way for crypto and blockchain adoption. The newly reported crypto licensing and mining legislation could be one step closer to that. Earlier in December 2021, the government declared the Dubai World Trade Centre (DWTC) as a comprehensive zone and a regulator for cryptocurrencies. As reported earlier, One of the leading crypto exchanges, Binance, is eyeing the UAE market as it signed an exclusive memorandum of understanding (MOU) with the DWTC in December. The partnership would see Binance help make DWTC a crypto hub in the region and assist crypto exchanges and service providers make UAE markets accessible.