“Securities” is close to issuing the regulatory, supervisory and supervisory framework
Initial approval before the trade license for a “virtual asset service provider”
“Securities”: Violation of the legislative and regulatory framework entails legal and regulatory measures.
From the source
The Securities and Commodities Authority confirmed that it is close to issuing the regulatory, supervisory and control framework related to virtual assets issued for investment purposes, stressing the need for every person wishing to work as a “virtual asset services provider” within the country to obtain initial approval from it, before obtaining a license commercial authority.
In a statement, the authority added that it had completed its participation with the concerned authorities in the country, to put in place the necessary regulatory framework to address and confront the risks of money laundering and terrorist financing related to virtual assets and virtual asset service providers in the UAE, in order to ensure that the virtual assets sector adheres to the recommendations and requirements of the Financial Action Task Force. FATF).
The “Securities” pointed out that it will be the only competent authority in the UAE, with the exception of the financial free zones “ADGM” and “DIFC”, to license, supervise and control the services and activities of virtual assets issued for investment purposes, not virtual assets issued for payment purposes, as well as monitoring the commitment of licensors. It accepted the recommendations and requirements of the Financial Action Task Force (FATF), which were codified by Federal Decree-Law No. (20) of 2018 in the matter of countering money laundering crimes and combating the financing of terrorism, the financing of illegal organizations, its amendments, and its implementing regulations.
The authority explained that the markets licensed by it and the local authorities within the country can apply for a virtual asset market license, noting that the application is subject to approval and compliance with the authority’s regulations and procedures.
On the other hand, the authority stressed that every person wishing to work as a “virtual asset services provider” within the country must obtain an “initial approval” from the authority, in accordance with the rulebook for financial activities issued by it, before obtaining a commercial license from the competent authority. .
The authority also stressed the need for virtual asset service providers that have commercial licenses, and under which they practice virtual asset services, to apply to the authority to obtain the necessary license to engage in activities related to virtual assets, as well as its assertion that all virtual asset service providers must comply with all legislation related to the controls to confront Money laundering in the country, regarding virtual assets.
The Securities and Commodities Authority indicated that it is looking forward to the cooperation and participation of all concerned parties and parties in establishing preventive compliance in accordance with the legislation in force, with the aim of: enabling innovation through advanced regulations based on the principles of due diligence and flexibility, and using protocols to effectively reduce financial fraud or criminal activity, Through strong real-time tracking, ensuring compliance with the directives of the Financial Action Task Force on combating money laundering and terrorist financing, as well as encouraging risk mitigation through training, awareness, disclosure, management and governance, and conducting appropriate and deterrent control and supervision processes, ensuring compliance with the Group’s requirements. financial work.
The Securities and Commodities Authority stressed that violating the legislative and regulatory framework will result in appropriate legal and regulatory measures.
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