UAE plans to issue Crypto licenses to virtual asset providers by end of first quarter
It’s now more than a year after Dubai’s financial services regulator first announced it would be developing a regulatory framework for the cryptocurrency industry. Its latest plan is to issue licenses to virtual asset providers
UAE Prepares to Attract Crypto Investors
According to an announcement on February 17, the United Arab Emirates (UAE) is preparing to attract crypto firms as it aims to issue federal licenses for Virtual Asset Providers (VASPs) by the end of Q1.
The company’s Securities and Commodities Authority (SCA) is in the final stages of amending legislation to allow VASPs to establish offices in the region, a government official told a news media.
In addition, the official said that the UAE aims to build an ecosystem for crypto mining – an industry traditionally criticized by environmentalists and policymakers around the world for its high electricity costs and greenhouse gas emissions.
The move follows a partnership between cryptocurrency exchange Binance and the Dubai World Trade Center late last year to help establish a regulatory framework for crypto.
Binance stated that it will share its experience with regulators around the world to facilitate the development of progressive crypto regulation.
At the time, the Dubai Media Office announced that the Dubai World Trade Center would become the UAE’s crypto regulator. The agency will develop crypto regulations to address anti-money laundering standards and track cross-border transactions.
Data compiled by research firm Chainanalysis shows that the UAE is the third-largest cryptocurrency market in the Middle East, with $26 billion worth of transactions between July 2020 and July 2021. The UAE is slowly emerging as the new cryptocurrency hub in the Middle East.