Compliance Alert: DMCC and SCA signed an MoU for Crypto Assets Businesses
The Dubai Multi Commodities Centre (DMCC) has signed a Memorandum of Understanding with the Securities & Commodities Authority (SCA) to establish a regulatory framework to offer, issue, list and trade crypto assets in DMCC.
As part of the agreement, crypto-assets businesses will have access to:
- bespoke licenses offered by the DMCC Crypto Centre
- exceptional customer service
- range of incentives
- a strong business regulatory framework developed by DMCC (in consultation with SCA).
There will be one approving authority, SCA, who will approve crypto assets related business proposing to set up in DMCC. Once approved, the SCA will also supervise the crypto asset activities in line with the regulatory framework that was introduced in October 2020.
The MoU will facilitate in developing an integrated ecosystem for the crypto and blockchain industries.
While the existing framework allowed the crypto assets businesses to set-up in the UAE mainland after obtaining SCA’s approval. The MOU is a path-breaking move for the Crypto Asset industry proposing to set-up with a 100% foreign ownership and also at the same time be supervised by the SCA, a securities’ regulator in the UAE, in relation to crypto-assets businesses.
The above development builds on DMCC’s comprehensive strategies to promote technology-driven trade and to attract innovative companies to Dubai and builds the foundation for any future partnerships in the crypto space. The launch of the DMCC Crypto Centre is a major step in implementing the framework.
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We assist in understanding and meeting the regulatory obligations and compliance in the UAE (including DIFC/DFSA, ADGM/FSRA, SCA and Central Bank) for a proposed regulated set-up or existing business. Our expertise spans a wide range of financial services activities including FinTech and digital assets, wealth management, banking, fund management and others.
Our comprehensive regulatory and compliance service offerings include:
- Preparation of application for authorization
- Preparation of Regulatory Business Plan
- Drafting of policies and procedures aligned to the relevant regulatory obligations as per the rulebooks
- Liaising with SCA and DMCC for financial services permission and company set-up
- Providing compliance advisory on an ad-hoc basis or even act as the compliance officer on an outsourced basis
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