meta_id 3253615

On April 13, 2026, the Securities and Commodities Authority (SCA) issued a comprehensive regulatory framework for virtual assets, establishing an integrated system designed to support market development while maintaining investor protection and market integrity. The framework comprises five primary regulatory units: general requirements; business conduct regulation; alternative trading systems; anti-money laundering and counter-terrorism financing (AML/CTF); and prudential requirements. These units collectively provide a comprehensive legislative and supervisory structure for entities operating in the virtual assets sector. The framework expands the scope of regulated activities from three to eight, including: dealing in virtual assets as principal; dealing in virtual assets as agent; custody services provision; custody services arrangement; investment transaction arrangement; investment advisory services; portfolio management; and operation of multilateral trading facilities. This expansion reflects market evolution and the increasing diversity of business models and services within the virtual assets sector. A specialised unit within the framework governs alternative trading systems, regulating trading facilities for virtual assets, traditional multilateral securities trading facilities, and multilateral trading facilities for tokenised securities. This integrated approach reflects the SCA's commitment to developing a regulatory framework that accommodates the convergence of traditional and digital market models. The framework establishes balanced regulatory foundations that combine innovation support with market integrity protection and investor safeguards. It incorporates clear licensing, compliance, governance, risk management, and prudential standards aligned with international standards and best practices from the International Organization of Securities Commissions (IOSCO) and the Financial Action Task Force (FATF), applying the principle of proportionality between regulatory requirements and activity risk levels. Walid Saeed Al Awadi, SCA chief executive, said the framework establishes clear and comprehensive foundations for regulating virtual assets activities in the United Arab Emirates, enabling innovation within a reliable environment that ensures investor protection and market integrity.