VARA says the new framework will offer “regulatory certainty”, giving market participants greater clarity around their responsibilities.
It also compels market participants to adhere to “gold-standard” risk assurance and anti-money laundering (AML) standards.
Virtual asset service providers, licence applicants and new market entrants will be offered a route towards licensing under the framework, with all virtual asset service providers required to register with VARA and become fully compliant with the new rules.
The new regulatory framework covers seven licensed virtual asset activities: advisory services; broker-dealer services; custodial services; exchange services; lending and borrowing services; payments and remittances; and virtual asset management and investment services.
This custom-designed construct reflects UAE’s commitment to building responsible safeguards, and Dubai’s confidence in delivering a progressive VA ecosystem that nurtures next-gen innovation.