UAE Central Bank Issues New AML Guidelines for Crypto Sector

• Within a month, the UAE’s central bank’s new regulations will go into force.
• Virtual assets, virtual asset service providers, and business models are all included.

The UAE Central Bank has updated its regulations for financial institutions. To follow in order to prevent money laundering and the funding of terrorism in connection with digital currencies and NFTs. New anti-money laundering and counter-terrorism funding criteria for financial institutions are being adopted. This is being done by central banks throughout the globe as cryptocurrency use increases.

Moreover, Banks, finance businesses, exchange houses, payment service providers, registered hawala providers, insurance agents, and brokers are all included in the scope of these regulations.

Stringent AML Guidelines

Furthermore, the successful fulfillment of legislative responsibilities for registered financial institutions is signaled by the publication of guidelines. Discussing dangers associated with dealing with cryptocurrencies and crypto service providers. Within a month, the UAE’s central bank’s new regulations will go into force.

Virtual assets, virtual asset service providers, and the business models of both are all included. They are defined in detail by the central bank. The United Arab Emirates (UAE) is one of the world’s foremost regulators of the digital asset sector.

Also, one of the seven emirates, Dubai, has a specialized regulator looking after the digital asset business, as was previously reported. In April of this year, the Securities and Commodities Authority, a federal regulator located in Abu Dhabi, began accepting applications for licenses to provide crypto services.

Moreover, companies in the United Arab Emirates (UAE) that provide virtual asset services, with the exception of those in economic-free zones, are required by law to apply for and get appropriate licenses. In Dubai, businesses must apply to the SCA and the Virtual Assets Regulatory Authority (VARA) via a streamlined application procedure.