SCAnning VASPs: Guidelines For Regulation Of Virtual Assets And Virtual Asset Service Providers

Key Takeaways

• In July 2024, the SCA issued new guidelines to regulate Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs) in the UAE.
• There is nothing to indicate that the new SCA regulations would displace VARA's authority in the emirate of Dubai. It would appear that SCA regulations would apply to VASPs in all emirates outside Dubai and outside the two financial free zones (ADGM and DIFC).
• The guidelines are part of the Virtual Assets Framework, focusing on investment purposes rather than payment purposes, which falls under the Central Bank of the UAE.
• Objectives of the guidelines include consumer protection, technology governance, market integrity, and AML/CFT compliance.