UAE Introduces New Framework for Virtual Asset Companies

The Capital Market Authority has introduced a new regulatory framework for virtual assets, establishing a more structured and comprehensive system for companies operating in the sector.

The framework creates an integrated regulatory regime built around five core modules. These include general requirements, conduct of business, trading systems, anti-money laundering, and prudential standards, bringing multiple rules under one unified structure.

Wider Scope for Virtual Asset Services

The updated framework expands the number of regulated activities from three to eight, reflecting how the virtual asset market has grown in complexity.

It now covers a broader range of services such as:

• Trading and dealing in virtual assets
• Custody services
• Investment advisory
• Portfolio management
• Operation of trading platforms

A dedicated module has also been introduced for alternative trading systems, covering both virtual asset platforms and tokenised securities alongside traditional trading systems.

Focus on Oversight and Investor Protection

The framework places strong emphasis on licensing, governance, compliance, and risk management. Its goal is to maintain market integrity while strengthening investor protection across the sector.

It aligns with international standards from organizations such as International Organization of Securities Commissions and Financial Action Task Force, ensuring the UAE remains in line with global regulatory practices.

According to Waleed Saeed Al Awadhi, the framework is designed to keep pace with the rapid evolution of financial markets while supporting innovation in a secure environment.

Supporting Market Growth

The move comes as the UAE continues to position itself as a hub for digital assets and financial innovation. By providing clearer rules and stronger oversight, the framework aims to attract companies while supporting the development of new services and platforms.

With a more detailed and flexible rulebook now in place, firms gain clearer guidance on operations, while investors benefit from improved protection and transparency.

What It Means

The introduction of this framework marks a step toward a more mature and structured virtual asset market in the UAE. By combining innovation with regulation, the country continues to strengthen its position in the global digital finance landscape.