SCA revamps it's regs on Virtual Assets

The SCA joins the party - New regulations for Virtual Assets

The UAE Securities and Commodities Authority issues two new regs relevant to Virtual Assets.

Hang on, wasn't VARA the one?

Err. No. VARA regulates Dubai (mainland and free zones, excluding DIFC) and the SCA regulates VA activities in onshore UAE.

Ok. I’m confused.

Good news for us consultants. Anyways, the point being…VA exchanges can now only deal in Accepted Virtual Assets, similar to what’s found (under different names) in the DIFC and the ADGM.

So how many lists do I have to get on to??

There’s more. A new Cat 7 with capital requirements ranging from AED 1 mil to AED 5 mil (plus OpEx).

Hmm…so I want to start a VA business. Which regulator do I approach?

Tricky one. There is the DIFC, then the ADGM, then VARA, and if none of these, then the SCA. Depends on where you operate, to who you sell and also on what happens next - hopefully a joint VA Committee that agrees on a common minimum denominator…

Explain.

If you provide services onshore, chances are you will need clearance from the SCA even if you are licensed by the DIFC or the ADGM, and VARA as well if you do stuff in mainland/free zone Dubai. A bit confusing now, I agree, but what are we there for?

The Riffle