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The United Arab Emirates’ Securities and Commodities Authority (SCA) has said that it is about to issue virtual asset investment regulation.
The Securities and Commodities Authority (SCA) has finished a consultation on money laundering and terrorist financing risks in the UAE. The country is the region’s financial capital and has demonstrated efforts to formulate regulations for virtual assets.
The UAE’s efforts for developing these regulations are aimed at attracting new forms of business as economic competition is increasing in the region.
The country has also worked on tightening regulations against the illicit flow of money through its financial system. The Securities and Commodities Authority issued a statement on the anti-money laundering and terrorist financing risk framework after the global financial crime watchdog, the Financial Action Task Force (FATF) placed the UAE on the “grey list”.
The grey list is a list of countries and jurisdictions that the FATF deems to be high-risk and are subject to increased monitoring.
The #UAE’s market regulator #SCA says it is closer to issuing virtual asset investment regulation, and has finished a consultation on money laundering and terrorist financing risks in the sector.https://t.co/VXv4oCTIew
— Al Arabiya English (@AlArabiya_Eng) March 9, 2022
The Securities and Commodities Authority successfully finished consultations with relevant authorities in the UAE to ensure that the virtual assets sector complies with international standards and FATF’s recommendations.
The SCA has oversight on virtual asset activities and services issued for investment purposes in the UAE. However, financial free zones including the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) issue their own regulations.
Suggested read: UAE Issues $1.048 Billion Worth of Fines for Money Laundering & Terrorism Financing