UAE regulator rolls out new framework for virtual asset firms

Dubai: The Capital Market Authority has introduced a new regulatory framework for virtual assets, setting out a broader and more structured rulebook for firms operating across the sector as activity continues to expand.

The framework brings together five core modules covering general requirements, conduct of business, trading systems, anti-money laundering and prudential standards, forming a single regulatory umbrella for virtual asset activities in the UAE.

It also expands the scope of regulated services from three to eight, reflecting the growing complexity of business models across the sector and the need for clearer oversight.

The updated framework now covers a broader range of services including dealing in virtual assets, custody, investment advice, portfolio management and the operation of trading platforms.

This expansion is aimed at aligning regulation with how the market has evolved, while ensuring that different types of activity are subject to requirements that match their risk profile.

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

This approach reflects a shift towards integrating digital and traditional financial markets within a single regulatory structure.

The framework sets out detailed requirements across licensing, governance, compliance and risk management, with an emphasis on maintaining market integrity and protecting investors.

It draws on international standards from bodies such as IOSCO and the Financial Action Task Force, with a focus on aligning regulation with global practices.

Waleed Saeed Al Awadhi, CEO of the Capital Market Authority, said the framework is designed to keep pace with rapid changes in financial markets.

“Virtual assets are reshaping how financial markets operate, and regulation must evolve at the same pace. This framework establishes clear and comprehensive foundations for virtual asset activities in the UAE, enabling innovation to develop within a trusted environment that safeguards investors and upholds market integrity.”

The move comes as regulators globally continue to refine their approach to virtual assets, balancing innovation with the need for stronger oversight.

The UAE has been positioning itself as a hub for digital assets and financial innovation, with regulatory clarity playing a central role in attracting firms and investment into the sector.

By setting out a more detailed and flexible framework, the CMA is aiming to provide companies with clearer operating guidelines while supporting the development of new services and platforms.

The framework also reinforces supervisory oversight, ensuring that firms operate within a transparent and accountable environment.

The introduction of the framework marks a step towards a more mature regulatory landscape for virtual assets in the UAE.

Companies operating in the space will now have access to a clearer rulebook, while investors benefit from stronger protections and more consistent standards across the market.

The CMA said the framework is designed to support long-term growth by combining innovation with stability, helping position the UAE as a competitive destination for digital finance and future-facing financial services.