UAE to Introduce Crypto Licensing Regulations

The United Arab Emirates (UAE) is set to have a general crypto regulation that’ll cover every part of the county.

According to a report from Bloomberg, the country will be issuing a federal crypto license for virtual assets service providers in the first quarter of the year.

It claimed that the UAE Securities and Commodities Authority (SCA) is already in the final stages of formalizing the legislation.

This new law will make it possible for crypto companies and businesses to operate in the country. It’s believed to be part of the country’s attempt to establish itself as a crypto-friendly nation.

The SCA and Central Bank will regulate the industry but each region would have the freedom to determine licensing requirements and operations within their zones.

The report also hinted that UAE authorities were also planning to develop a regulated crypto mining system.

A broader crypto law will undoubtedly encourage more digital assets firms to move to the country. Already, Binance signed a memorandum of understanding with Dubai World Trade Centre (DWTC) last year to help other companies and service providers access the UAE market.

UAE is currently the third-largest crypto market in the Middle East after Turkey and Lebanon.