United Arab Emirates: Issued Joint Guidance on Combating the Use of Unlicensed Virtual Asset Providers in the United Arab Emirates

On 6 November 2023, the Central Bank of the United Arab Emirates, the Securities and Commodities Authority, the Dubai Financial Services Regulatory Authority, the Financial Services Regulatory Authority of Abu Dhabi Global Market, the Virtual Assets Regulatory Authority, and the Ministries of Justice and Economy released the “Joint Guidance on Combating the Use of Unlicensed Virtual Asset Providers in the United Arab Emirates”. In particular, the Guidance features a list of "Red Flags" designed to identify suspicious activities related to virtual assets, encompassing indicators such as a lack of regulatory license, unrealistic promises, poor communications, and the absence of regulatory disclosures. The Supervisory Authorities require all licensed Licenced Financial Institutions (LFIs), Designated Non-Financial Businesses and Professions (DNFBPs) and Licenced Virtual Asset Service Providers (VASPs) to report to the Authorities suspicious transactions and activities related to virtual assets.