CMA Strengthens UAE’s Financial Landscape with New Virtual Assets Framework
Abu Dhabi: The Capital Market Authority (CMA) has unveiled its new Virtual Assets Framework, aimed at establishing a modern regulatory regime that aligns with the rapid expansion of the virtual assets sector. This initiative is designed to enhance market efficiency and foster responsible innovation within a structured regulatory environment.
Comprehensive Regulatory Structure
The newly introduced framework encompasses five primary modules: General Requirements, Conduct of Business, Alternative Trading System, Anti-Money Laundering and Counter-Terrorist Financing, and Prudential Requirements. Collectively, these modules create a transparent legislative and supervisory framework for entities engaged in virtual asset activities.
The framework broadens the scope of regulated activities from three to eight, now including: Dealing in Virtual Assets as Principal, Dealing in Virtual Assets as Agent, Providing Custody, Arranging Custody, Arranging Investment Deals, Providing Investment Advice, Portfolio Management, and Operating a Multilateral Trading Facility. This expansion reflects the evolving market landscape and the diverse business models associated with virtual assets, while ensuring that supervisory requirements are proportionate to the nature of each activity.
Alternative Trading System Module
A significant component of the framework is the dedicated Alternative Trading System module, which governs trading facilities. This module is not limited to virtual asset trading facilities but also extends to traditional multilateral trading facilities for securities and those dedicated to tokenized securities. This approach demonstrates the Authority’s commitment to creating a coherent regulatory framework that adapts to the evolving market structures and the convergence of traditional and digital trading models.
Balancing Innovation and Investor Protection
The framework seeks to establish a balanced regulatory foundation that supports innovation while ensuring market integrity and investor protection. It outlines clear requirements for licensing, compliance, governance, risk management, and prudential standards. These standards align with international best practices, including guidelines from the International Organization of Securities Commissions (IOSCO) and the Financial Action Task Force (FATF). The framework adheres to the principle of “same activity, same risk, same regulatory outcome.”
H.E. Waleed Saeed Al Awadhi, Chief Executive Officer of the Capital Market Authority, emphasized the importance of adapting regulation to the changing financial landscape. He stated that the framework lays down comprehensive foundations for virtual asset activities in the UAE, allowing innovation to flourish in a secure environment that protects investors and maintains market integrity.
Implications for the Financial Sector
The introduction of this framework marks a pivotal advancement in the legislative and regulatory landscape for the financial sector. It underscores the CMA’s dedication to keeping pace with global technological and financial advancements. The framework offers a more flexible regulatory regime for virtual assets and related markets, fostering sector growth on robust institutional foundations.
Moreover, it enables entities to operate within a transparent, credible, and internationally aligned environment characterized by efficiency and strong supervisory oversight. This development enhances the UAE’s competitiveness and solidifies its status as a leading financial hub for innovative business and financial services.
About the Capital Market Authority
The Capital Market Authority (CMA) was established in 2000 as the federal regulator of the UAE’s capital markets. The CMA is tasked with regulating and supervising securities and commodities markets, safeguarding investor rights, promoting transparency and fair market practices, and enhancing market confidence and competitiveness. The Authority operates under a forward-looking regulatory framework that aligns with international best practices, supporting sustainable market development in accordance with the UAE’s national economic vision. For more information, please visit: www.sca.gov.ae.
Media Contact: CMA@edelmansmithfield.com
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Published on 2026-04-13 13:18:00 • By the Editorial Desk
