Soon UAE will issue crypto licenses to crypto companies
UAE Securities and Commodities Authority is working on legislation to provide a specified crypto license to the crypto companies.
UAE is a technology friendly region in the world, where it showed a significant negative stance on crypto adoption but later started to work on a better framework to allow the citizens to go with the crypto and blockchain industry.
On 17 February, Bloomberg covered a report on the current ongoing work by the UAE Securities and Commodities Authority to create precise legislation to provide a crypto license to the virtual assets provider companies in UAE.
Reportedly this legislation is in its final stage and soon before the end of the first quarter of this year, eligible crypto companies will be able to get a crypto license to operate their crypto offerings in UAE. So we can say, this crypto license will allow the crypto companies to work more perfectly under the legislation, and also it will help to boost the circulation of crypto & blockchain in UAE with the aim to make the jurisdiction of UAE crypto-friendly.
The report also noted that current legislation work on the crypto framework and licensing system is under the collaborative approach of existing rules & systems of Paris-based Financial Action Task Force guidelines, United States, United Kingdom, and Singapore.
So the new crypto legislation of UAE will be a hybrid form of other crypto-friendly countries and also new legislation will cover the majority of the concerns to handle easily under consultation with the Central Bank of UAE. However this legislation will be at the Central level but besides these legislation guidelines, local financial institutions can create their local legislation-based licensing guidelines.
Besides the crypto regulation & crypto license, UAE is also working on the legislation on the crypto mining industries, which are rapidly increasing in UAE.
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