Companies seeking a license in the UAE will have to demonstrate “operational efficiency and flexibility”, as well as meet certain operational standards.

The United Arab Emirates' securities regulator (SCA) will begin accepting applications from companies looking to provide cryptocurrency services in the country, according to an April 17 announcement.

Except for companies already licensed in the UAE’s non-financial sectors, all domestic virtual asset service providers must apply for approval with the SCA. The licensing regime adopted by the SCA on Monday follows a decision by the UAE Council of Ministers last year to regulate the cryptocurrency sector. The SCA also took on the role of regulating the sector earlier this year.

In addition, companies applying for a license will have to demonstrate “operational efficiency and flexibility,” as well as meet certain operational standards.

Cryptocurrency Companies Wanting to Operate in the UAE Can Now Apply for a License

According to the announcement, amendments have been made to the virtual asset rulebook from 2022. Financial activities such as virtual asset brokerage and custody, as well as new virtual asset service providers have been added to the law.

One of the legal requirements related to the commercial license also states that individuals and organizations wishing to engage in virtual asset activities must be based in the United Arab Emirates to conduct their business.

There are already a number of companies that have been granted temporary licenses to operate in the UAE such as Binance, Crypto.com, OKX.

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