The UAE is establishing a licensing framework for companies and other providers in the growing crypto industry, positioning the country as a crypto-friendly jurisdiction.
The United Arab Emirates is reportedly preparing a national licensing scheme aimed at attracting leading global providers of virtual asset services, according to a Bloomberg report published Thursday.
Sources said the proposed crypto licenses are intended to make it easier for major digital asset firms and other fintech providers to set up operations in the UAE, with the broader goal of turning the country into an international hub for cryptocurrency activity.
The Securities and Commodities Authority (SCA), the UAE’s securities regulator, is said to be finalizing details of the licensing regime. Insiders told Bloomberg that the framework will create a streamlined licensing route for crypto exchanges and other virtual asset service providers (VASPs) seeking to establish offices and conduct business in the country.
The national crypto licensing program is reportedly being drafted in line with guidance from the Financial Action Task Force (FATF). Under FATF standards, jurisdictions allowing crypto-related businesses to operate must implement strict registration protocols and ensure robust anti–money laundering (AML) compliance.
In the UAE’s model, the SCA will work alongside the central bank to oversee national regulation of crypto firms. Regional financial regulators will also have authority to manage licensing processes tailored to their specific jurisdictions and the types of crypto businesses applying for authorization.
By offering a regulated, crypto-friendly environment, the UAE aims to capture market share from established destinations such as Hong Kong and Singapore, enticing exchanges, custodians, and fintech innovators to relocate or expand into the country.
Beyond licensing, the UAE is also targeting cryptocurrency miners through policy measures that support the mining sector while encouraging the use of green energy. These complementary initiatives are intended to balance industry growth with sustainability goals and regulatory safeguards.
Overall, the planned licensing framework and coordinated oversight represent a strategic effort by the UAE to build a competitive, compliant ecosystem for virtual assets and related financial technologies. If implemented as reported, the approach could accelerate the influx of global crypto firms and reinforce the UAE’s position as a regional and international fintech center.