UAE Crypto Adoption Boom: Securities Regulator Accepts Crypto License Applications

It looks like the mass crypto adoption in the UAE will continue to boom in 2023, according to the latest reports. The UAE Securities Regulator just made a move that will leave the crypto enthusiast people in awe. Check out the latest data below.

The prestigious online publication Coinbase has just revealed the fact that the federal securities regulator in the United Arab Emirates (UAE) will start accepting applications from companies that are struggling to provide crypto services in the country, according to a Monday announcement.

The official notes report the fact that all virtual asset service providers in the country – except for companies that are already licensed in the UAE’s financial free zones – have to apply for approval with the Securities and Commodities Authority (SCA).

It’s also important to note the fact that the licensing regime was approved by the SCA on Monday. This decision came following a decision by the UAE Council of Ministers dating back to 2022 to regulate the crypto sector. The SCA took on the role of regulating the sector earlier this year.

It’s been also reported the fact that the firms that are planning to operate in the Emirate of Dubai must obtain a license from its Virtual Assets Regulatory Authority (VARA) besides the SCA approval, according to the announcement.

The companies that need authorization will have to demonstrate “operational efficiency and flexibility,” and meet operational standards rules for a set of standards.

Amendments have been made to the virtual asset rule book from 2022, according to the announcement as cited by CoinDesk.

Financial activities such as brokerage and custody of crypto, as well as a new category of virtual asset service provider, have been added to this legislation that we mentioned above.

“A person wishing to engage in virtual asset activities shall have headquarters in the State to conduct his business, according to one of the legal forms approved by the local authorities concerned with commercial licenses,” according to the regulation. 

While some people argue, saying that regulation and the crypto space should not be best buddies, there are a lot of voices that are saying the fact that the crypto space needs more regulation in order for the mass adoption of digital assets and the blockchain to fully take place.