Regulator Says UAE ‘Closer to Issuing the Regulatory and Supervisory Framework’ for VASPs

Regulator Says UAE "Closer to Issuing the Regulatory and Supervisory Framework" for VASPs

The United Arab Emirates (UAE) is getting closer to issuing a regulatory and supervisory framework that will govern the country’s virtual asset industry, the Securities and Commodities Authority (SCA) has said. FATF Recommendations

A UAE securities regulator, the SCA has said it is getting closer to “issuing the regulatory and supervisory framework related to virtual assets issued for investment purposes.”

In addition, the regulator revealed in a statement that it had consulted the “concerned authorities” during the development of the regulatory framework that addresses the risks of money laundering and terrorist financing that relate “to virtual assets and virtual asset service providers.” Such consultations have been concluded the statement adds.

The regulator meanwhile said the development of this framework had been done in order to ensure the country’s crypto industry adheres to the Financial Action Task Force (FATF)’s recommendations. As a result, licensed exchanges “can apply for a license for virtual assets exchange subject to the approval and complying to all regulations and procedures of the Authority.”

This rule, however, excludes applicants from the two financial free zones, the Abu Dhabi Global Market (ADGM) and the Dubai International Financial Centre (DIFC). Complying With Anti-Money Laundering Controls

Meanwhile, the statement also clarifies that persons intending to run a virtual asset service provider (VASP) business must obtain the initial approval from the SCA. Furthermore, the SCA said VASPs that have commercial licenses and are providing any virtual asset services, need “to apply to the Authority to obtain the necessary license to practice such activity.”

These persons are also required to “confirm” their obligation to comply with all legislation related to anti-money laundering controls, added the statement.

The SCA said while it looks forward to the cooperation and participation of all entities, it warned that breaching the aforementioned regulatory and supervisory framework will result in the authority taking the appropriate legal and supervisory actions. Tags in this story Abu Dhabi Global Market (ADGM), Dubai International Financial Centre (DIFC), Financial Action Task Force (FATF), regulatory framework, UAE Securities and Commodities Authority, virtual asset service provider, virtual assets, virtual exchanges

What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Crypto Industry Welcomes Biden"s Executive Order — Expert Says "It"s About as Good as We Could Ask" REGULATION | 7 hours ago Biden Signs Executive Order Establishing National Crypto Policy Across 6 Key Priorities REGULATION | 16 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleAscendEX Lists Kasta, (KASTA) Next articleAfrican Crypto Startup, Basqet Launches Payment Gateway to Enable Businesses Accept Bitcoin – Goes Live With 118 Businesses and $1.3 Million in Transaction Volume Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItVenezuela Might Be Affected by Russian Banks" SWIFT Suspension

Analysts from Venezuela have expressed their worries about the expulsion of a number of Russian banks from SWIFT, an international messaging system that allows the interconnection of banks. These measures could affect the finances not only of Venezuela, but also ... read more.South African Mobile Network Operator MTN Buys Land in the Metaverse Cambridge Centre for Alternative Finance Launches Digital Assets Research Project With 16 Banks Leaked Images Suggest Opensea Plans to Add Solana-Based NFT Support Mobius Capital Founder Explains Why Bitcoin Is Rallying Amid Russia-Ukraine War