Regulatory Alerts2022-01-01
Cabinet Decision No. 111/2022 on the Regulation of Virtual Assets and Their Service Providers
Issued by the UAE Council of Ministers, this Cabinet Decision establishes a comprehensive licensing framework for virtual assets and their service providers across the UAE. It mandates that all entities conducting virtual asset activities obtain approval from the Securities and Commodities Authority or designated Local Licensing Authorities, while explicitly excluding financial free zones and central bank-regulated payment assets. The regulation enforces strict compliance with anti-money laundering rules, cybersecurity standards, and capital requirements, granting the Authority powers to impose administrative penalties of up to ten million dirhams and requiring existing providers to regularize their status within three months.
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