The Securities and Commodities Authority (SCA) of the United Arab Emirates announced on Monday, April 17, that it will accept applications from businesses looking to offer cryptocurrency services in the nation, except virtual asset firms currently operating in financial-free zones.
Throughout the UAE, there are more than 40 free zones that permit total foreign ownership and offer exemptions from corporation and income taxes.
This development occurs after the SCA board of directors authorized the action as part of a plan to make the UAE a Middle Eastern blockchain powerhouse.
The SCA was designated as the body in charge of making decisions on the regulation of virtual asset transactions and licensing for service providers and their “work mechanism” by the UAE Council of Ministers in Decision No. 111, which was released at the end of 2022.
All businesses that offer virtual asset services in the UAE must now formally declare their existence by applying for an operating license from the SCA, except businesses that are licensed in financial-free zones, as a result of this decision by the SCA board of directors. Also, they must acquire a license from the Dubai Virtual Asset Regulation Authority (VARA).
VARA was created in March 2022 to supervise cryptocurrency exchanges and product issuances in Dubai, which has become the base of operations for hundreds of cryptocurrency start-ups.
Also, certain businesses that had aspirations to enter the UAE were given temporary permits. The ambitions to enter the UAE have all been disclosed by Binance, Crypto.com, OKX, and Komainu.