UAE CMA opens consultation on virtual assets framework

The UAE Capital Market Authority (CMA) has launched a consultation on its proposed regulatory approach for VASPs, as it looks to respond to the rapid growth of the virtual assets sector across onshore UAE.

It comes as the UAE continues to develop its regulatory framework for virtual assets, following the introduction of new laws earlier this year; with the CMA now looking to shape how the legislation will work.

Marie Chowdhry, a fintech expert with Pinsent Masons in the UAE, said the consultation highlighted the UAE’s ongoing commitment to developing a comprehensive digital assets regulatory framework.

“While a number of UAE regulators have already introduced virtual asset-related frameworks, the consultation demonstrates that regulators across the country continue to refine their approach as the sector evolves and new business models emerge” she explained.

“The consultation appears to be focused on striking an appropriate balance between encouraging innovation and maintaining robust market integrity and investor protection standards. In particular, the CMA's emphasis on transparency, compliance and confidence suggests that regulatory credibility will remain a key priority alongside facilitating growth in the virtual assets sector.”

The consultationseeks input on how much stakeholders are aware of the plans, and what impact it could have on both business opportunities and investor protections – along with possible improvements to transparency, compliance and confidence in financial markets.

The CMA has said the proposed framework was intended to support innovation, attract quality investment and strengthen the UAE's competitiveness as a financial centre while maintaining appropriate standards of investor protection.

Jessica White, a digital regulation expert with Pinsent Masons in the UAE, said the consultation would give companies in the sector an opportunity to shape the regulatory framework that they should not pass up.

“Firms should consider whether the proposed framework adequately reflects operational realities, compliance challenges and emerging international regulatory trends,” she added.

“Stakeholder participation at this stage may help ensure that any future regime is both effective from a regulatory perspective and commercially workable for market participants.

The consultation is open to stakeholders and market participants, and runs until 30 September 2026.