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While the United Arab Emirates has often been presented as an El Dorado for cryptophiles due to very low taxation, the country’s regulatory body has just started accepting license applications from various players in the sector. But depending on each emirate, the administrative procedures may vary.
The regulator will begin to study the requests!
In an announcement on Monday, the United Arab Emirates Securities Regulator said it would begin processing license applications from several players in the cryptocurrency.
Within the Gulf country, the regulations are now very clear. And it will work through a compulsory license system. A system that applies to all companies wishing to provide crypto services in the country. Unless these are already allowed in the UAE Financial Free Zones. An element that had allowed crypto to largely develop within the Gulf country. As illustrated by the proportion of Emiratis holding digital assets (over 27%).
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A regulation that varies according to the Emirates!
Specifically, platforms wishing to operate in the UAE must seek approval from the country’s Securities and Commodities Authority. THE licensing regime was also approved on Monday. This implementation echoes a proposal that was formulated last year by the country’s Council of Ministers.
Since the beginning of the year, the SCA therefore ensure the regulatory role for the whole country. But within the country, the framework already differs according to the 7 emirates. For companies wishing to operate within the emirate of Dubai, for example, it will be necessary to obtain a license from the local regulatory authority in addition to the authorization from the SCA.
The report published earlier this week also notes that:
Companies wishing to obtain authorization will have to demonstrate operational efficiency and flexibility and meet certain operational standards.
Beneath this somewhat vague formula is actually the idea of conform to the central body (the SCA) but also to the regulatory bodies of each emirate, when it does have a dedicated entity. Regarding the operating procedures for these actors, the note specifies that substantial modifications have been made. Thus, brokerage via brokers and custody of digital assets will now be permitted.
The regulation also stipulates that a crypto player wishing to engage in the territory must have a registered office in the United Arab Emirates.
Source : Coindesk
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