UAE To Regulate Crypto Industry With New Licensing System For Businesses

Key Points:

• The UAE is implementing a licensing system for crypto businesses in the region.
• The Securities and Commodities Authority will soon begin accepting applications for crypto licenses.
• The move to regulate the industry aims to prevent scams and market failures and offers better protection to businesses and investors.

UAE plans to regulate the digital assets industry with a licensing system for businesses providing crypto services. SCA will accept applications for licenses. Regulations aim to prevent scams and market failures, and offer better protection to businesses and investors.

The United Arab Emirates (UAE) is planning to regulate the cryptocurrency industry by implementing a licensing system for businesses providing crypto services in the region. The Securities and Commodities Authority (SCA) will soon begin accepting applications for crypto licenses. The UAE Council of Ministers passed a resolution last year authorizing the SCA to regulate the cryptocurrency industry, and the SCA has assumed control of the sector earlier this year.

This development comes as an increasing number of firms are entering the UAE, such as the major exchange ByBit, which recently established its headquarters in the region. However, a green signal from the SCA is not the only requirement for businesses wishing to conduct business in Dubai.

They must also obtain a Virtual Assets Regulatory Authority (VARA) license. Companies applying for licenses will primarily need to demonstrate “operational efficiency and flexibility” and adhere to a set of operational regulations. According to one of the legal forms approved by the local authorities concerned with commercial licenses, a person wishing to engage in virtual asset activities must have their headquarters in the State to conduct business.

The UAE’s move to regulate the cryptocurrency industry is part of a broader trend by governments to improve their regulations and prevent potential scams or market failures. This regulation will offer better protection to both businesses and investors in the region.

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