ABU DHABI, 18th July, 2023 (WAM) -- The Securities and Commodities Authority (SCA) announced that it had received licensing requests and inquiries from companies intending to provide Virtual Asset services following the issuance of the necessary regulations.
The move aims to ensure that all companies that provide products and services related to the Virtual Assets sector in the country are fully regulated, as the SCA's Board of Directors, chaired by Muhammad Ali Al-Shorafa seeks to strengthen the country's position by ensuring that the local financial markets are among the best globally.
Dr. Maryam Al Suwaidi, CEO of the SCA, stated that pursuant to Cabinet Resolution No. (111) of 2022 regarding the regulation of Virtual Assets and their service providers, which gave the SCA the mandate to issue regulatory decisions for Virtual Asset transactions and license its service providers; the SCA's Board of Directors issued the necessary decisions, which requires all companies providing Virtual Asset services based in the country (except for companies licensed in Financial Free Zones) to obtain a license from the SCA.
All companies operating in Dubai must only obtain a license from the Dubai Virtual Assets Regulatory Authority (VARA), which will inform the SCA to have a unified register of all licensed Virtual Asset service providers in the UAE.
She added that the Virtual Assets sector is among the modern technological industries included in the SCA's strategy as one of the pillars for sustainable growth of the UAE's financial markets.
The SCA called upon all companies that practice any of the Virtual Assets services to submit a request immediately to obtain the necessary approval to avoid being subjected to appropriate legal measures, which the Authority will initiate during the next stage, which may include one or more of the following: (a warning, a fine not exceeding (AED10 million) or referring the violator to the Public Prosecution).
The SCA also urged all investors to refrain from dealing with any company that provides Virtual Assets services before ensuring that it has the necessary licenses and approvals to protect their investments and not expose them to any risks.
This market notice is being issued by Dubai’s Virtual Assets Regulatory Authority (VARA) to highlight to all industry stakeholders, and consumers that the deadline for VA sector entities to engage in the regulatory licence application process has now elapsed. As formally announced on 05.November further to multiple advisories since Q2-2023, entities operating within the virtual asset domain were required to commence procedural engagement with VARA on/or before 17.November.2023.