The United Arab Emirates (UAE) is setting the stage for a push to attract crypto companies, as it looks to issue federal licenses for virtual asset providers (VASPs) by the end of Q1.
A government official told Bloomberg that the company's Securities & Commodities Authority (SCA) is in the final stages of amending legislation to let VASPs set up shop in the region. The Block contacted the SCA for comment and to clarify timings.
The move follows a tie-up between crypto exchange Binance and the Dubai World Trade Centre at the end of last year to help it establish a crypto regulatory framework.
Binance said it would share its experience in collaborating with global regulators with the watchdog to spur on the development of "progressive" crypto regulations.
At the time, the Dubai Media Office announced that the Dubai World Trade Centre would become a crypto regulator in the UAE. The outfit will set up crypto regulations to deal with anti-money laundering standards and track cross-border transactions.
The latest news comes a little over a year after Dubai's financial services regulator first said that it will develop a regulatory framework for the cryptocurrency sector.