UAE denies issuing golden visas to individuals investing in cryptocurrencies.
In the dynamic world of digital currency investments, the United Arab Emirates (UAE) has established a comprehensive regulatory framework aimed at ensuring transparency, investor protection, and financial integrity. This multi-layered structure, enforced by the Securities and Commodities Authority (SCA), Dubai Virtual Assets Regulatory Authority (VARA), Abu Dhabi Global Market's Financial Services Regulatory Authority (ADGM-FSRA), and Dubai Financial Services Authority (DFSA), balances innovation with risk management across the UAE.
The SCA, primarily responsible for virtual asset service providers (VASPs) across the UAE mainland, except for specific free zones like Dubai's DIFC and Abu Dhabi's ADGM, oversees virtual asset issuance, trading, licensing, and ensures adherence to anti-money laundering (AML) and know your customer (KYC) regulations. Since 2022, all crypto activities require an SCA license or approval from a local regulator.
VARA, established in Dubai, regulates virtual asset firms specifically. As of July 2023, all Dubai-based virtual asset firms must be licensed by VARA and registered with the SCA for federal oversight, ensuring coordination between emirate-level and federal regulation.
ADGM’s FSRA, on the other hand, has developed an early and detailed regulatory framework for digital assets and blockchain operations since 2018. Entities offering custody, brokerage, advisory, or trading platforms (like Multilateral Trading Facilities) must obtain approval under ADGM’s Financial Services and Markets Regulations.
In the Dubai International Financial Centre (DIFC), the DFSA regulates crypto tokens using a recognition-based approach for fiat crypto tokens and security tokens. It enforces licensing, governance, AML/CFT, and consumer protection rules similar to traditional financial institutions, integrating blockchain firms into the conventional financial ecosystem.
Key regulatory features include robust AML/KYC compliance, clear licensing pathways for VASPs, and a technology-agnostic approach that treats security tokens and commodity tokens issued on distributed ledger technology (DLT) with the same legal and regulatory standards as traditional securities. Specialized free zones like RAK Digital Assets Oasis provide innovation-supportive environments with investor confidence and tax incentives, including VAT exemptions on most crypto transactions.
Recently, VARA has confirmed that claims suggesting Golden Visas are being granted to virtual asset investors in Dubai are false. The company "TON" is neither licensed nor regulated by VARA. The public was warned against engaging with unverified online advertisements or offers regarding the Golden Visa. VARA encourages investors and consumers to interact only with entities that are fully licensed and regulated for virtual asset-related services and investments.
The SCA has also warned the public against misleading information regarding digital currency investments. The federal entities called on the public and investors to be cautious and verify the legitimacy of any information or offers they receive. For verified details on Golden Visa eligibility, individuals are advised to visit the ICP's official website: www.icp.gov.ae.
Both VARA and the SCA are committed to high standards of risk assurance in the UAE's virtual asset sector and prioritize addressing risks such as money laundering, terrorism financing, cross-border scams, cybersecurity vulnerabilities, and consumer protection gaps. Their active cooperation with law enforcement bodies further protects consumers in the UAE's rapidly growing digital asset market.
The SCA's procedures aim to ensure transparency and credibility, boosting investor confidence locally and globally. The UAE's regulatory framework governing digital currency investments is thus a testament to the country's commitment to fostering a secure and innovative financial ecosystem.
The SCA, in collaboration with VARA and DFSA, ensures that businesses operating in the UAE's digital currency sector adhere to general-news topics such as anti-money laundering (AML) and know your customer (KYC) regulations. To stay compliant with the UAE's regulatory framework, all crypto firms, including business and finance entities, must obtain licenses from appropriate authorities like VARA, ADGM-FSRA, or SCA.
