The crypto industry has been expanding without any major hurdles. However, this growth comes with ill-doers as well. Therefore, in order to avoid any potential scams or downfalls through the market, governments have been sprucing up their regulations. The United Arab Emirates [UAE] seems to be moving in the same direction.
Earlier this week, UAE’s Securities and Commodities Authority [SCA] revealed that it would soon start accepting applications for crypto licenses. Businesses looking to set up shops in the UAE and provide crypto services across the region will be required to gain approval.
Following a resolution by the UAE Council of Ministers to regulate the cryptocurrency industry last year, the licensing system was authorized by the SCA on April 17. Furthermore, early this year, the SCA assumed control of the sector.
This move could be attributed to the increased number of firms that have been entering the UAE. Earlier today, major crypto exchange, ByBit entered UAE by setting up its headquarters in the region.
The latest statement also noted how a green signal from the SCA wasn’t all that was required. In addition to receiving SCA permission, businesses wishing to conduct business in the Emirate of Dubai must also get a license from the Virtual Assets Regulatory Authority [VARA]. However, firms that are already licensed in the financial-free zones of the UAE are exempted.
What do crypto firms need to keep in mind while applying?
Companies requesting licenses will primarily need to show “operational efficiency and flexibility.” Alongside, they have to adhere to a set of operational regulations. The statement further read,
“A person wishing to engage in virtual asset activities shall have headquarters in the State to conduct his business, according to one of the legal forms approved by the local authorities concerned with commercial licenses.”