In an era of rapid digital transformation and ongoing technological advancements, virtual assets have emerged as an economic concept that has gained ground in global financial markets. They are critically important as they offer innovative means of investment that have attained widespread popularity among investors. Given this expansion of the virtual asset ecosystem, the Securities and Commodities Authority (SCA) realized the importance of its role in regulating this sector to ensure balance and protect investors.  

The Cabinet issued Resolution No. (111) of 2022, which regulates virtual assets and their service providers. It establishes a robust legal framework that governs virtual asset transactions to promote transparency and good governance. The resolution includes general provisions, licensing requirements, and controls that govern the conduct of virtual asset activities. 

The SCA subsequently issued Decision No. (26/Chairman) of 2023 Regulating Virtual Asset Platform Operators. It provides detailed regulations for the operation of virtual asset platforms, requiring platform operators and service providers to comply with a set of operational controls introduced to ensure the transparency and integrity of transactions. These include effective supervisory systems and safeguards implemented to ensure that investor data and funds are properly protected. 

Efficiency and integrity are key principles adopted by the SCA to ensure sound transactions and protect investors in the virtual assets sector. To promote these principles, the SCA has implemented measures to limit deceptive and misleading practices, such as fictitious trading, which aims to create a false impression of active trading and artificially affect the price of assets. It has also been keen to establish stringent mechanisms to protect customers against the risks associated with market volatility, maintain the confidentiality of their data, and prevent unauthorized access to ensure secure and sustainable operations in this sector. 

As part of its efforts to ensure full compliance with the controls and laws put in place, the Cabinet issued Resolution No. (99) of 2024, which provides for penalties and sanctions that will be imposed in case of breaches. The sanctions range from financial penalties and cessation of business activities to license revocation in case of repeat offences. The SCA has the authority to refer violators to the Public Prosecution as part of its ongoing efforts to ensure market integrity and bolster confidence in the virtual assets sector.

Finally, the SCA will continue its efforts to regulate the virtual assets sector in accordance with the best international standards. It seeks to create a secure investment environment that enhances the attractiveness of the UAE as a leading financial hub. By continually introducing creative innovations in this field, the SCA plays an instrumental role in balancing technological advancements with investor protection, striving to remain a leading model in promoting safe and reliable virtual asset investments. 

H.E. Dr. Maryam Buti Al Suwaidi

Chief Executive Officer 

Securities and Commodities Authority