The United Arab Emirates is seeking to attract the world’s largest crypto companies and to this end it is ready to issue federal licenses to virtual asset service providers by the end of the first quarter.
The Securities and Commodities Authority of the country is believed to be in the final stages of amending the legislation.
A nationwide licensing system for virtual asset companies could help the UAE compete with financial centers such as Singapore and Hong Kong, which are in the process of creating a fully regulated environment for cryptocurrency trading.
Some of the country’s free financial zones have already issued permits for crypto companies, including the Dubai Multi Commodities Center (22 licenses), the Abu Dhabi Global Market (6) and the Dubai Silicon Oasis Authority (1).
The country will adopt a hybrid approach to supervision: regulation will be conducted with the participation of the central bank, while local financial centers will be able to establish their own licensing procedures.