Afridi & Angell Legal Alert
The UAE Federal Cabinet has issued Cabinet Decision 111 of 2022, concerning the regulation of virtual assets (the Virtual Assets Decision). The Virtual Assets Decision was issued on 12 December 2022 and will come into force 30 days following its publication in the Official Gazette.
The Virtual Assets Decision aims to regulate virtual assets and virtual asset businesses at a Federal level in the UAE. It is anticipated that the Virtual Assets Decisions and any implementing regulations issued pursuant to it will operate together with Emirate-level regulations (such as those issued by the Virtual Assets Regulatory Authority in the Emirate of Dubai).
The Virtual Assets Decision requires (this is not an exhaustive list) that businesses within its scope:
The introduction of federal legislation on the regulation of virtual asset businesses is a welcome development and should go some way in establishing a common standard for the regulation of such businesses across the United Arab Emirates. As with all such legislation, it remains to be seen how this legislation will be enforced and applied in practice. ■Download Legal Alert as PDF