The Securities and Commodities Authority of the United Arab Emirates (UAE) has declared that it has started receiving licensing applications from crypto companies interested in conducting business in the region.
See related article: UAE central bank to issue CBDC, promote digital asset growth
Quick Facts
- As well as the license from the UAE authority, digital asset businesses that want to operate in Dubai, one of the seven emirates of the UAE, will need to secure a license from the Virtual Assets Regulatory Authority in Dubai.
- Firms that are already registered in the country’s financial-free zones do not need to apply for the two licenses, according to the announcement. The UAE’s financial-free zones offer financial incentives and independent regulatory frameworks to attract businesses, particularly those in the financial sector.
- In February, Dubai issued its newest crypto regulatory framework as part of policies that target to draw investments from crypto platforms and other digital asset industry firms and make the region a hub for the sector. At the same time, the Securities and Commodities Authority was handed the responsibility to regulate the digital asset industry.
- On March 20, Singapore-based exchange Crypto.com announced that it had acquired a Minimum Viable Product Preparatory License from Dubai, which permits firms to develop and test their services and products for up to six months.
- In November, Hong Kong-based crypto custodian Hex Trust was granted the preparatory license, and officially launched its operations in Dubai in February.
- Binance was granted its preparatory license in September last year, but according to Bloomberg’s April 5 report, Dubai authorities asked the global exchange to provide more information regarding its management before granting its operational permit.
See related article: Singapore-based Crypto.com gets preparatory license to expand services in Dubai
