How the CMA is redrawing the rules for virtual assets (and what comes next)

The UAE’s Capital Market Authority (CMA) is moving to bring order and oversight to a fast-evolving sector: The watchdog rolled out earlier this week a new virtual assets framework that consolidates what had been a patchwork of rules into a single, consolidated framework.

The crypto reset expands the regulatory perimeter from three to eight activities, now covering dealing, custody, investment advice, portfolio management, arranging transactions, and operating trading platforms. The framework “will bring more firms within licensing requirements,” particularly those whose models were previously only indirectly captured, such as advisory or portfolio management, a CMA spokesperson told EnterpriseAM in an emailed statement.

The broader principle is one of equivalence: The CMA is moving toward a “same activity, same risk, same regulatory outcome” approach, meaning firms performing functions comparable to traditional finance will face equivalent scrutiny regardless of the technology involved.

One key shift is how tokenized assets are treated. “Not everything that uses DLT [distributed ledger technology] will automatically fall under the VA regime,” the CMA noted, stressing that firms must assess the legal nature of the instrument and not just the technology. That should drive “more disciplined classification” and closer coordination with regulators before products are launched.

There’s a one-year grace period running to 27 February 2027, but it’s not a pass. The CMA said firms “should pay close attention to the transition arrangements,” which will determine how existing business models are treated, with circulars already issued outlining the impact on applicants and license holders.