The UAE Capital Market Authority (CMA) has introduced the Virtual Assets Framework, marking a significant step in its efforts to establish a modern and comprehensive regulatory environment.
This new framework of Capital Market Authority is designed to support the rapid growth of the virtual assets sector, improve market efficiency, and foster responsible innovation, all while ensuring a clear and effective regulatory structure.
According to the statement, the new framework serves as a specialized regulatory umbrella governing virtual asset activities and consists of five core modules:
General Requirements
Conduct of Business
Alternative Trading System
Anti-Money Laundering and Counter-Terrorist Financing
Prudential Requirements
Together, these modules provide a comprehensive and transparent legislative and supervisory structure for entities operating in this sector.
The framework also expands the scope of regulated activities from three to eight activities, namely:
Dealing in Virtual Assets as Principal
Dealing in Virtual Assets as Agent
Providing Custody
Arranging Custody
Arranging Investment Deals
Providing Investment Advice
Portfolio Management
Operating a Multilateral Trading Facility
This expansion reflects the evolution of the market and the growing range of business models and services associated with virtual assets, while enhancing the framework’s ability to accommodate a broader set of activities under clear rules and supervisory requirements proportionate to the nature of each activity.
Among its core modules, the framework includes a dedicated Alternative Trading System module, which regulates trading facilities. This module is not limited to regulating a trading facility dedicated to virtual assets, but also extends to conventional multilateral trading facilities for securities and multilateral trading facilities dedicated to tokenized securities.
This reflects the Capital Market Authority’s approach to establishing a coherent regulatory framework that keeps pace with the evolution of market structures and responds to the convergence of traditional and digital models within a more integrated trading environment.
Waleed Saeed Al Awadhi Chief Executive Officer CMA
“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.”
The issuance of this framework represents a significant step in the development of the legislative and regulatory environment for the financial sector, underscoring the Capital Market Authority’s commitment to keeping pace with global technological and financial developments. It provides a more advanced and flexible regulatory regime for virtual assets and related markets, supporting sector growth on sound institutional foundations.
Furthermore, the Capital Market Authority’s new framework enables entities to operate within a clear, credible, and internationally aligned environment based on transparency, efficiency, and strong supervisory oversight, enhancing the jurisdiction’s competitiveness and reinforcing its position as a leading financial hub for future-ready business and financial services.
