The UAE plans to begin issuing federal licenses to crypto service providers in the first quarter of 2019. In terms of cryptocurrency legislation, the UAE will take a mixed approach.
A national crypto licensing system, the government hopes, will tempt multinational firms to relocate to the region. According to sources, the UAE is planning to start issuing federal licenses to virtual asset service providers.
UAE plans to begin issuing federal licenses to crypto service providers
The UAE is aiming to regulate the cryptocurrency business throughout the country. In the first quarter of 2019, the United Arab Emirates (UAE) aims to begin giving federal licenses to crypto service providers. The United Arab Emirates will take a mixed approach to cryptocurrency regulation. A national crypto licensing system, the government hopes, will tempt multinational firms to relocate to the region.
According to Bloomberg, the UAE is planning to start issuing federal licenses to virtual asset service providers (VASPs) by the end of the first quarter, citing an anonymous government official.
The United Arab Emirates’ Securities and Commodities Authority (SCA) is nearing the completion of legislation to regulate VASPs. A national crypto licensing system, the government hopes, will tempt multinational firms to relocate to the region.
The country conducted a risk assessment of crypto assets late last year. The evaluation included 14 public-sector institutions and 16 private-sector entities. The government has concluded that proper regulation, rather than outright prohibition, can limit the likelihood of cryptocurrencies being utilized in criminal financial operations.
The UAE’s crypto law, according to the news site, incorporates the Financial Action Task Force’s (FATF) most recent guidelines as well as regulatory techniques used in the US, the UK, and Singapore.
The regulation will take a hybrid approach. The SCA will regulate the crypto industry with the help of the central bank. On a daily basis, local financial centers may establish their own licensing procedures. According to the official, the UAE government also wants to oversee the crypto mining industry.
VASPs have already been granted licenses in certain of the UAE’s financial-free zones. Binance and the Dubai World Trade Centre Authority reached an agreement in December to build a worldwide crypto hub.
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