The Capital Market Authority (CMA) has announced the issuance of the Virtual Assets Framework, reflecting its commitment to developing a modern and integrated regulatory regime that keeps pace with the rapid growth of the virtual assets sector, enhances market efficiency, and supports responsible innovation within a clear and effective regulatory environment.

The new framework serves as a specialized regulatory umbrella governing virtual asset activities and consists of five core modules: General Requirements, Conduct of Business, Alternative Trading System, Anti-Money Laundering and Counter-Terrorist Financing, and Prudential Requirements. Together, these modules provide a comprehensive and transparent legislative and supervisory structure for entities operating in this sector.

The framework also expands the scope of regulated activities from three to eight activities, namely: 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 evolution of the market and the growing range of business models and services associated with virtual assets, while enhancing the framework's ability to accommodate a broader set of activities under clear rules and supervisory requirements proportionate to the nature of each activity.

Among its core modules, the framework includes a dedicated Alternative Trading System module, which regulates trading facilities. This module is not limited to regulating a trading facility dedicated to virtual assets, but also extends to conventional multilateral trading facilities for securities and multilateral trading facilities dedicated to tokenized securities. This reflects the Authority's approach to establishing a coherent regulatory framework that keeps pace with the evolution of market structures and responds to the convergence of traditional and digital models within a more integrated trading environment.

The framework aims to establish balanced regulatory foundations that combine support for innovation, market integrity, and investor protection by setting out clear requirements for licensing, compliance, governance, risk management, and prudential standards, in line with relevant international standards and best practices, including those issued by International Organization of Securities Commissions (IOSCO) and the Financial Action Task Force (FATF), and aligned with the principle of "same activity, same risk, same regulatory outcome."

Commenting on the development, H.E. Waleed Saeed Al Awadhi, Chief Executive Officer of the Capital Market Authority, said: "Virtual assets are reshaping how financial markets operate, and regulation must evolve at the same pace. This framework establishes clear and comprehensive foundations for virtual asset activities in the UAE, enabling innovation to develop within a trusted environment that safeguards investors and upholds market integrity."

The issuance of this framework represents a significant step in the development of the legislative and regulatory environment for the financial sector, underscoring the Authority's commitment to keeping pace with global technological and financial developments. It provides a more advanced and flexible regulatory regime for virtual assets and related markets, supporting sector growth on sound institutional foundations. Furthermore, the framework enables entities to operate within a clear, credible, and internationally aligned environment based on transparency, efficiency, and strong supervisory oversight, enhancing the jurisdiction's competitiveness and reinforcing its position as a leading financial hub for future-ready business and financial services.

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