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UAE regulators have unified virtual asset licensing to ensure consistency of oversight across all emirates.
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Real time data sharing allows for coordinated inspections and efficient enforcement.
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Legislative Review Targets AML and CTF Gaps to Align with Global Standards
The United Arab Emirates is reorganizing its crypto rules. The United Arab Emirates is streamlining its crypto rules.
One license to operate across the UAE
The new partnership introduces an open licensing process. The licenses issued by VARA in Dubai and SCA in the other emirates are mutually recognized. This allows crypto firms to operate throughout the country without the need for separate approvals. The regulators have also agreed to conduct a joint compliance monitoring program to ensure that rules are enforced uniformly across the country.
It’s not easy to get a license in UAE. The process is serious. Here’s a report from our archives on the steps LBank was required to take during its bid.
Information is shared in real-time by regulators
The real-time information exchange between the two regulators is a key feature of the partnership. This arrangement includes coordinated legal actions and inspections to boost regulatory efficiency.
To support the new system the SCA established a Coordinating Committee for Legislative Review. This committee will work closely with VARA in order to assess the current virtual asset laws, and propose updates that are aligned with international standards including those set forth by the Financial Action Task Force.
The review will also aim to close any gaps that exist in the existing rules, particularly around anti-money-laundering (AML) and Counter-Terrorism Financing (CTF).
What this means for the crypto market
This unified framework will make the future more predictable and clear for investors and businesses. The unified rules will reduce administrative headaches, and speed up regulatory decisions. This will boost overall market confidence for the UAE as an important global crypto hub.
Who is already in? Major companies are already setting themselves up under UAE rules. CoinEdition covered Ripple’s Hidden Road in Abu Dhabi.
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