The UAE has announced strict measures against unlicensed cryptocurrency companies. The Central Bank and other regulators have introduced new rules that provide for civil and criminal penalties for Virtual Asset Service Providers (VASPs) operating without a license.
The measures aim to combat money laundering and financial crimes, related to the UAE being included in the FATF "grey list" in 2022. UAE Central Bank Governor Khaled Mohamed Balama noted that these steps raise awareness about the risks of unlicensed VASPs.
The NAMLCFTC Committee has published a list of "red flags" for identifying unlicensed companies, including the lack of physical presence and unrealistic promises.
Licensed companies are required to report transactions with unlicensed VASPs to protect the country’s financial system. FATF will review the UAE’s progress in 2024.
