United Arab Emirates to Start Crypto Licensing

There have been no significant problems stopping the growth of the crypto business. But with this growth come people who do bad things as well. So, states have been tightening their rules to keep the market from being a place for scams or other bad things. The United Arab Emirates [UAE] seems to be going similarly.

This week, the Securities and Commodities Authority (SCA) of the UAE announced that it would soon start accepting license applications for crypto. Businesses that want to shop in the UAE and offer crypto services to the rest of the region must get permission.

United Arab Emirates Crypto Licensing Process

Last year, the UAE Council of Ministers decided to control the cryptocurrency industry. On April 17, the SCA gave the green light to the licensing system. Also, the SCA took control of the area at the beginning of this year.

This move could be because more and more businesses are entering the UAE. ByBit, a significant cryptocurrency exchange, established its headquarters in the UAE earlier today.

The most recent comment also said that getting a green light from the SCA wasn’t enough. Businesses that want to do business in the Emirate of Dubai must obtain permission from the SCA and a license from the Virtual Assets Regulatory Authority [VARA]. But companies already licensed in the UAE’s financial-free zones are excluded.

How should crypto companies apply?

When applying for licenses, companies must mostly show “operational efficiency and flexibility.” In addition, they have to follow a set of rules for how to run the business. The rest of the sentence says, 

“A person wishing to engage in virtual asset activities shall have headquarters in the State to conduct his business, according to one of the legal forms approved by the local authorities concerned with commercial licenses.”