Cryptocurrency companies in the United Arab Emirates (UAE) can now apply to the Securities and Commodities Authority for operating licenses.
- Dubai’s Virtual Assets Regulatory Authority requires digital asset companies wishing to conduct business in Dubai, one of the seven emirates of the UAE, to acquire a license.
- Companies that are already registered in the country’s financial-free zones are exempt from applying for the two licenses, according to the announcement. Business owners, especially those in the financial sector, are attracted to the UAE’s financial-free zones due to the financial incentives and independent regulatory frameworks they offer.
- As part of policies to attract investment and establish Dubai as a regional hub for the digital asset industry, Dubai released its latest crypto regulatory framework in February. The Securities and Commodities Authority was tasked with overseeing the digital asset industry the same month.
- It was announced on March 20 that the Singapore-based exchange Crypto.com has been granted a so-called Minimum Viable Product Preparatory License from Dubai, which allows businesses to test and develop their products and services for a period of six months.
- In November, Hong Kong-based cryptocurrency custodian Hex Trust received its preparatory license, and in February, it officially launched operations in Dubai.