[ad_1]
The federal securities regulator in the United Arab Emirates (UAE) has officially started accepting applications from companies planning to offer one or more crypto-related services in the jurisdiction.
Under the new legislation, the UAE Securities and Commodities Authority (SCA) has launched a process to review approval requests for virtual asset service providers (VASPs). The SCA assumed regulatory responsibility for crypto businesses on Feb. 1.
According to the announcement, all companies that have not yet obtained a financial free zone license need to apply for a license. Additionally, companies operating in Dubai must be licensed by the city’s regulatory authority (VARA), in addition to the SCA seal.
At the end of 2022, the UAE Council of Ministers issued Decision No. 111, designating the SCA as the agency responsible for regulating virtual asset transactions and issuing licenses for service providers and its “working mechanism.” The emirate’s ambitious framework covers a wide range of assets and activities and is designed to attract companies seeking regulatory clarity.
According to the new regulations, the SCA has the right to request data and documents from cryptocurrency companies at any time, and will give a reasonable response time. Service providers have the right to appeal any disciplinary decision taken by the supervisory authority.
The new rules create a legal framework for cryptocurrencies aimed at protecting investors and designing fully assured international standards for industry governance. In addition, VARA now has enforcement powers in Dubai’s Special Development Zones and Free Zones, with the exception of DIFC.
The regulations set out four mandatory rulebooks and activity-specific rulebooks that VASPs must follow to provide their services. The “Marketwide Product Regulations” include guidance for setting rules for compliance, risk management, market conduct and other requirements.
VARA also cites an incentive to protect investors, but heavy fines could make things harder for crypto service providers. Under the new regulations, all authorized cryptocurrency companies must abide by the marketing, advertising and promotions rulebook.
Violations of these guidelines are subject to severe penalties because transgreesor A fine of $5,500 to $55,000 will be imposed. If a business repeats the same violation within a year, it could face a double fine of up to $135,000.
Notably, the UAE was the first to establish professional regulatory body For the field of virtual assets. Sheikh Mohammed Bin Rashid, Prime Minister of the United Arab Emirates and ruler of Dubai, has announced that the emirate has enacted its first law governing cryptocurrency activities in 2022 and has also created an independent regulator agencies to oversee the industry.
the country has established a Crypto-friendly reputation Compare that to other financial jurisdictions that instruct cryptocurrency companies to avoid consumer-oriented marketing.
[ad_2]
Source link