The UAE Capital Markets Authority (CMA) has published the Chairman of the Authority's Board of Directors’ Resolution No. (04/Chairman) of 2026 concerning the Regulation of Virtual Asset Service Providers and the Alternative Trading System Operator. The Resolution takes a modular approach, comprising a general module, a business regulation module and an alternative trading system module.
General Module
The general module sets out the regulated financial activities falling within the Resolution's scope. These include dealing in virtual assets as principal or agent, providing and arranging custody, operating a multilateral trading facility (MTF), providing investment advice, portfolio management and arranging deals.
The module also addresses licensing categories and application procedures, including provisions governing in-principle approvals. It further sets out requirements relating to governance, systems and controls applicable to licensed entities.
Privacy and Algorithmic Tokens
The Resolution addresses the regulatory treatment of privacy tokens and algorithmic tokens, both of which are prohibited. Firms should review their existing product and service offerings in light of this prohibition. Firms operating in or considering entry into the UAE virtual asset market should assess their activities against the new licensing categories and ensure their governance frameworks and internal controls meet the standards prescribed under the Resolution.
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