The SCA Guidelines provide a regulatory framework for Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs) in the UAE, excluding financial free zones. Issued under Cabinet Resolution No. (111) of 2022, these guidelines detail licensing requirements, operational standards, and obligations for entities dealing with VAs as investment instruments, aiming to ensure market integrity and investor protection.
Key requirements
- Virtual asset activities are subject to licensing, including platform operation, safe custody, financial consulting, portfolio management, brokerage, and dealing.
- Licensed bodies must implement robust technology governance, security procedures, and measures for cryptographic keys and wallets storage.
- VASPs are obligated to protect client funds, disclose virtual asset risks, and comply with anti-money laundering (AML), combating the financing of terrorism (CFT), and sanctions evasion requirements.
- Specific requirements are outlined for virtual asset platform operators regarding operational efficiency, integrity, transparency, and trading regulation.
- Licensed bodies must protect individual data and adhere to rules regarding transactions with unknown counterparties and margin trading.
Applies to: Virtual Assets (VAs) and Virtual Assets Services Providers (VASPs) operating in the UAE, with the exception of financial free zones, including virtual asset platform operators, safe custody providers, financial consultants in virtual assets, virtual asset portfolio managers, virtual asset brokers, and virtual asset dealers.