- UAE regulators unify virtual asset licensing for consistent oversight across all emirates.
- Real-time data sharing enables coordinated inspections and efficient enforcement.
- Legislative review targets AML and CTF gaps to align with global standards.
The United Arab Emirates is streamlining its crypto rules. The country’s two main regulators, the federal Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA), have signed an agreement to create a unified framework for the entire virtual asset industry.
One License to Operate All Across the UAE
The new partnership introduces a shared licensing process. This means a crypto firm’s license issued by either VARA in Dubai or the SCA in other emirates will be mutually recognized, allowing them to operate across the country without needing separate approvals. The regulators also agreed to conduct joint compliance monitoring to ensure rules are enforced consistently everywhere.
But it’s not always easy. Getting a license in the UAE is a serious process. Here’s our past report on the steps LBank had to take during its bid.
Regulators to Share Information in Real-Time
A main feature of the partnership is the real-time exchange of information between the two regulators. This arrangement includes coordinated inspections and legal actions to boost regulatory efficiency and reduce unnecessary efforts.
To support the new system, the SCA has established a Coordinating Committee for Legislative Review. This committee will work with VARA to assess current virtual asset laws and propose updates that align with international standards, including those set by the Financial Action Task Force (FATF).
The review also aims to close any gaps in existing rules, especially around anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
What This Means for the Crypto Market
For businesses and investors, this unified framework means a clearer and more predictable path forward. Harmonized rules are expected to cut down on administrative headaches and lead to quicker regulatory decisions, boosting overall market confidence in the UAE as a serious global crypto hub.
Who’s already in? Major players are already setting up shop under UAE’s rules. CoinEdition previously covered Ripple-backed Hidden Road’s approval in Abu Dhabi.
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