The CMA introduces expanded rules covering trading, custody, and advisory services.
Dubai: The Capital Market Authority has introduced a new regulatory framework for virtual assets, establishing a broader and more structured rulebook for firms operating in 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 in the sector and the need for clearer oversight.
Wider scope for virtual asset activities
The updated framework now covers a broader range of services, including dealing in virtual assets, custody, investment advisory, 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 matched to their risk profiles.
A dedicated module for alternative trading systems has also been introduced, covering both virtual asset platforms and tokenised securities, alongside conventional trading venues.
This approach reflects a shift towards integrating digital and traditional financial markets within a unified regulatory framework.
Focus on oversight and investor protection
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 set by bodies such as IOSCO and the Financial Action Task Force, with a focus on aligning the regulatory framework with global best 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.”
Building a structured market environment
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 key role in attracting firms and investment into the sector.
By introducing a more detailed and flexible framework, the CMA aims to provide companies with clearer operational guidelines while supporting the development of new services and platforms.
The framework also strengthens supervisory oversight, ensuring that firms operate within a transparent and accountable environment.
Supporting long-term sector growth
The introduction of the framework marks a step toward a more mature regulatory landscape for virtual assets in the UAE.
Companies operating in the sector will now have access to a clearer rulebook, while investors benefit from stronger protections and more consistent market standards.
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-focused financial services.
