The UAE Cabinet has issued Resolution No. (111) of 2022, Regulating Virtual Assets and the Related Service Providers, the Resolution aims to develop the legislative system for the Virtual assets sector and related activities in UAE.

The Resolution will guarantee the rights and duties of all parties involved while being compliant with Federal Decree-Law No. (20) of 2018 On Anti-Money Laundering, Combating the Financing of Terrorism and Financing of Illegal Organizations.

The scope of application applies to the VA sector in the UAE, including the FZs; VA Activities in the UAE, including the FZs, detailed in Article (5) of this Resolution; and VASP in the UAE, including the FZs.

However, the provisions of this Resolution shall not apply to the following:

Regulating the VAs inside FFZs and all relevant transactions; digital securities and contracts of digital commodities which are governed by their own regulations issued by the SCA; and VAs used for payment, including the SVF, which fall within the competence of the CBUAE, except for those approved by the Central Bank to be listed and traded for the purposes of investment in the VA Platform.

To View the full provisions in Arabic and English, please visit Document | MIDDLE EAST (westlaw.com)