On September 5, 2024, a significant cooperation agreement was signed between the Securities and Commodities Authority (SCA) and the Virtual Assets Regulatory Authority (VARA), regarding Virtual Assets Service Providers (VASPs) operating in/from Dubai. "
Under this agreement, the SCA and VARA will set forth rules and procedures for licensing and supervision VASPs and any related activities, services or associated transactions. This is subject to licensing in accordance with the provisions of Cabinet Decision No. 111 of 2022, and No. 112 of 2022 (Regulating Virtual Assets and Their Service Providers) and within the respective jurisdiction of both parties. This agreement reflects a collective commitment to ensure compliance with anti-money laundering laws. Furthermore, VASPs operating in/from Dubai, or wishing to service the emirate of Dubai will from now on require to obtain a license from VARA, and will be registered by default with the SCA to service the wider UAE
About SCA and VARA:
· Securities and Commodities Authority (SCA): is responsible, along with the Central Bank of UAE, for regulating the UAE's virtual assets sector. Up to today, the following licenses are available: Virtual asset platform operator; Safe custody of virtual assets; Financial consulting in virtual assets; Managing portfolio of virtual assets; Virtual Asset Broker; and Virtual Asset Dealer.
· Virtual Assets Regulatory Authority (VARA): regulates virtual assets across Dubai. Up to today, the following licenses are available: Advisory Services; Broker-Dealer Services; Custody Services; Exchange Services; Lending and Borrowing Services; Management and Investment Services; Transfer and Settlement services; and Issuance Category 1. This partnership represents a significant advancement in the creation of a secure and efficient virtual assets ecosystem, underscoring the UAE's dedication to innovation and excellence in financial regulation. We look forward to providing further details on the scope of this agreement in the near future.
The announcement can be found here: https://www.sca.gov.ae/en/media-center/news/9/9/2024/sca-and-vara-set-regulatory-framework-for-the-uaes-virtual-assets-sector-in-boost-to-the-countrys-.aspx
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