Benzinga - The United Arab Emirates (UAE) Securities and Commodities Authority (SCA) has recently announced its intention to accept applications from businesses aiming to offer cryptocurrency services within the nation.
This development comes as a result of the UAE Council of Ministers' decision to establish regulations for the crypto industry, with the SCA taking charge of overseeing the sector earlier this year.
With the exception of firms already licensed within the UAE's financial-free zones, all virtual asset service providers must seek approval from the SCA.
A few of the seven emirates, such as Dubai and Abu Dhabi, have already implemented licensing frameworks for cryptocurrency companies, with Dubai's recently launched system gaining traction within the local industry.
Companies seeking to conduct business in Dubai are required to acquire a license from the Virtual Assets Regulatory Authority (VARA) alongside SCA approval.
In order to obtain authorization, these firms must exhibit "operational efficiency and flexibility" and adhere to a specified set of operational standards.
The announcement also revealed updates to the virtual asset rule book from 2022, which now includes financial activities like virtual asset brokerage and custody, as well as a new category of virtual asset service provider.
According to the regulation, "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."
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