UAE to issue federal licenses for crypto providers

The free economic zones have already issued permits for the virtual asset service providers’ activities

17.02.2022 - 14:10

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What’s new? The UAE is preparing to issue federal licenses for virtual asset service providers (VASPs) by the end of the first quarter to attract the world’s largest cryptocurrency companies. This was reported to the Bloomberg news agency by the government’s representatives. The officials added that the Securities and Commodities Authority is in the final stages of amending legislation to allow the VASPs activities.

Information on the Bloomberg website

What does the report say? The government report says that the free economic zones have already issued permits for VASPs to operate. For example, The Dubai Multi Commodities Center has already granted licenses to twenty-two VASPs, Abu Dhabi Global Market to six, and Dubai Silicon Oasis Authority to one.

What are the prospects for the use of cryptocurrencies in the UAE? With the proper regulation and frameworks, the UAE can nullify the risks associated with illegal financial schemes instead of banning cryptocurrency trading and investment altogether. Abu Dhabi has adopted the recommendations of the Paris-based Financial Action Task Force on Money Laundering.

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