Virtual Assets & VASP Regulation in the UAE (Cabinet Resolution No. (111) of 2022)

The Hon’ble Prime Minister of the UAE has recently issued Cabinet Resolution No. (111) of 2022 Concerning the Regulation of Virtual Assets and their Service Providers. The said cabinet resolution has been issued effective from 13th January 2023 to regulate the virtual asset sector by mandating the licensing of specific virtual asset activities by the Securities & Commodities Authority (SCA) of the UAE or the local licensing authorities of specific Emirates (with an exception to the Financial Free Zones).

The said resolution also mandates adherence to AML regulations (in terms of Federal Decree Law No. (20) of 2018 and its executive regulations), and FATF recommendations explicitly issued for virtual asset segment.