Last February, His Highness Sheikh Mohammed bin Rashid Al Maktoum announced a law to regulate virtual assets in Dubai.
This move had a drastic impact on the cryptocurrency market. Dubai has become a magnet for cryptocurrency companies and platforms in light of global regulatory restrictions.
But with the development of the digital currency field in Dubai and the UAE in general, It has become necessary to have a regulatory framework covering the UAE as a whole.
Therefore, the UAE Cabinet issued a decision regulating virtual assets and assigned the Securities Authority to supervise the regulation of the activities of trading platforms.
Chairman of the Board of Directors of the Securities Commission explains the details of the decision
Mohamed Ali Al Shorafa Al Hammadi, Chairman of the Board of Directors of the Emirates Securities and Commodities Authority, came out recently to clarify some details about the decision to regulate virtual asset companies and platforms.
Here are the highlights of what was mentioned in a statement published by the Emirati agency, WAM :
- A virtual asset is a digital representation of value that can be digitally traded or transferred and does not include digital representations of fiat currencies, securities or other money.
- The operator is obligated to register the accepted virtual asset in the official list with the Authority before commencing trading in accordance with the form prepared for this purpose by the Authority
- A virtual asset may only be traded in the country after it has been accepted into the virtual asset platform operator’s official list
- The platform operator shall provide a risk assessment and management system
- The platform operator shall provide operational rules, provide compliance procedures, promptly investigate any complaints related to its operations, take disciplinary action and refer cases to the Authority when appropriate.
- Conducting an opinion poll for the public regarding the operational rules for a sufficient period and taking into account the comments received from the public without prejudice to the applicable legislation.
- The virtual platform operator is obligated to protect virtual assets and regulate trading by setting rules and procedures for fair, orderly and effective operation of trading in accordance with legislation, operational rules and instructions.
- The Securities and Commodities Authority reserves the right to request any documents or data from the operator of the virtual assets platform. The Authority shall also supervise, investigate, control and inspect the platform and the operator and everything related to them with the same powers granted to the markets.