SCA in UAE Opens Applications for Virtual Asset Services Licenses

The UAE Securities and Commodities Authority (SCA) announced on Wednesday that it has opened applications for licenses for virtual asset services companies. This follows the authority's approval of its board of the decision regulating virtual asset service providers.

Late last year, the UAE government issued Resolution No. 111 of 2022 Regulating Virtual Assets and Virtual Asset Service Providers, which provides the SCA with the authority to regulate virtual asset transactions and license virtual asset service providers.

Now, with the exception of tax-free zones, all UAE-based crypto companies must submit a license application to the SCA. Companies operating in Dubai will need to submit an application in VARA and be approved by the SCA according to uniform procedures.

According to the SCA's website, the resolution regulating virtual asset platform operators contains nine articles, the third of which stipulates that only companies accredited by the SCA or relevant bodies can trade virtual assets in the UAE.

Article 4 covers integrity, transparency, professional conduct; virtual asset protection systems and measures; compliance and disciplinary measures, systems and procedures; and rules and procedures for fair, orderly and effective operations. The fifth provides for the obligations of the operator. More details can be found at the SCA website.