Tom Bicknell of Pinsent Masons said: “Encompassing the learnings from its MVP licensing stage and widespread industry engagement, VARA’s introduction of the FMP licence will serve as a firm footing for the next stage of growth for the UAE’s leading virtual asset industry.”
Once the rollout begins, MVP licence holders and other VASPs will have to apply for an FMP licence to undertake their activities in the market. The FMP regime is structured around ensuring that anti-money laundering and combating the financing of terrorism (AML/CFT) compliance standards are met in accordance with the Financial Action Taskforce’s recommendations for VASPs. VARA said the FMP regime will also apply ongoing internal controls, corporate governance and conduct of business rules appropriate to the risk profile of the applicant.
Bicknell said: “VARA is undertaking engagement and consultation with market participants as part of its development of the FMP framework with a version of the framework expected to be released shortly. It is worth noting that VARA has made clear that, notwithstanding the release of the FMP framework, the regulator will seek to monitor global trends of the virtual industry and where appropriate issue further rules and guidance.”