Consulting Agency

Securities Commission Accepting Applications for Licensing Companies Dealing with Virtual Assets

This has become possible following the adoption of relevant regulatory decisions aimed at fully regulating all companies providing products and services in the virtual asset sphere. The goal of these measures is to strengthen the state's position and create local financial markets considered among the best in the world. Leading this process is the Board of Directors of the Authority, led by Mohammed Ali Al Shorafa.

Authorities urge companies dealing with virtual assets to urgently submit requests for approval to the regulatory body to avoid potential legal consequences that may be taken against violators. Violators may face a system of penalties, including warnings, financial fines (not exceeding 10 million dirhams), and referral of the case to the prosecution. Such measures were provided for in accordance with the provisions of Cabinet Resolution No. (111) of 2022 on the regulation of virtual assets and their providers.

Authorities also call on all investors not to engage in business relationships with companies providing virtual asset services until these companies have the appropriate licenses and permissions. This is done to protect investors' savings and prevent risks associated with dealing with illegal companies.

The regulatory body hopes for fruitful cooperation with existing virtual asset service providers and their strict adherence to regulatory requirements. Together, they aim to make the UAE an attractive hub for virtual asset companies' development and ensure a safe investment environment for all investors.