NEW Virtual Asset Regulations – A summary of CMA Decision No:4/R.M/2026
NEW Virtual Asset Regulations – A summary of CMA Decision No:4/R.M/2026
On 01 January 2026 the Securities & Commodities Authority (SCA) was reconstituted to become the Capital Markets Authority (CMA), following the implementation of Federal Law (32) 2025 which introduces the CMA as a replacement of SCA and Federal law 33 of 2025 which outlines the financial products and activities. Whilst this may appear a subtle name change, the reconstitution was far more sweeping than just a rebrand, effectively broadening the regulatory framework of what was once the SCA.
Under Federal law 33/2025, the new CMA has expanded jurisdiction over a defined set of Financial Activities (as set out in Article 3), including those relating to Virtual Assets¹, which is not restricted only to capital markets but expanded to include financial products. Article 1, Law 33/2025, then details a list of financial activities that includes “Activities & services related to Virtual Assets.”² In addition, Law 33/2025 states that:
“No person may carry out any Financial Activity within the state…”³
Following the implementation of Law 33/2025, CMA recently issued Decision No: 4/R.M/2026 that applies to Virtual Assets. This decision establishes a new framework of eight licenced financial activities, which compliments to an extent the activities listed by the Virtual Assets Regulatory Authority (VARA).
What does this mean in practice?
Decision No: 4/R.M/2026 effectively replaces the previous SCA rules pertaining to those operating, planning to operate or investing in Virtual Assets (VA). Prior to Decision No:4/R.M.2025 VARA, ADGM, DFSA and CBUAE all had their own take on digital/virtual assets and Decision No:4/R.M/2026 introduces a federal framework that operates alongside existing regimes . These existing regulatory frameworks are not removed by Decision No:4/R.M/2026 but designed to work alongside those rulebooks. As such, VARA will still be the governing regulator for Dubai established VA entities, whereas CMA applies to matters UAE wide. This framework does not apply to Financial Free Zones (such as ADGM and DIFC), which specifically fall outside CMA Regulation⁴.
The Eight Licenced Activities
Decision No:4/R.M/2026⁵ establishes eight categories that require a CMA approved licence.
1. Dealing in VA as principal⁶
2. Dealing in VA as agent⁷
3. Providing custody⁸
4. Arranging custody⁹
5. Operating a multilateral trading facility¹⁰
6. Providing investment advice¹¹
7. Portfolio management¹²
8. Arranging investment deals¹³
Minimum Capital Requirements
Article 21¹⁴ sets the minimum capital requirements required for each activity:
Category | Activity | Capital Requirement | Capital in case of holding client assets |
ONE | Dealing in virtual assets as principal. | Minimum capital of AED (4) million, or minimum capital based on expected or audited annual expense not less than 25%, whichever is greater | A minimum capital of AED 4 million, or min based on expected or audited annual expenses of not less than 35%, or the risk-based capital, whichever is greater |
TWO | Dealing in virtual assets as an agent or as a matched principal. | Minimum capital of AED (4) million, or minimum capital based on expected or audited annual expense not less than 25%, whichever is greater | A minimum capital of AED 4 million, or min based on expected or audited annual expenses of not less than 35%, or the risk-based capital, whichever is greater |
THREE | Providing custody | A minimum capital of AED 3 million, or min based on expected or audited annual expenses of not less than 35%, or the risk-based capital, whichever is greater | |
FOUR | 1. Arranging custody. 2. Arranging deals in investments. 3. Providing investment advice. | A minimum capital of AED 1 million, or min based on expected or audited annual expenses of not less than 35%, or the risk-based capital, whichever is greater | |
FIVE | Managing portfolios | A minimum capital of AED 1 million, or min based on expected or audited annual expenses of not less than 35%, or the risk-based capital, whichever is greater | A minimum capital of AED 1 million, or min based on expected or audited annual expenses of not less than 35%, or the risk-based capital, whichever is greater |
SIX | Operating multilateral trading facility | A minimum capital of AED 500 thousand, or min based on expected or audited annual expenses of not less than 35%, or the risk-based capital, whichever is greater | Capital based on based on expected or audited annual expenses of not less than 35%, or the risk-based capital, whichever is greater |
Prohibitions
Finally, Decision No:4/R.M/2026 provides a list of prohibitions, whereby a person or entity not licensed under Art 12, is strictly prohibited from carrying out the following within or inside the UAE. These are:
1. Virtual Asset Activity Prohibitions
- Providing operation & management services for VA platforms.
- Providing Exchange services between one or more forms of VA.
- Providing VA transfer services
- Providing brokerage services
- Providing custody & management services for VA & enabling control over them
- Providing financial services related to the offering and/or sale of VA or participating in such services.
2. Privacy Tokens¹⁵ & Prohibited Devices¹⁶
- Provide financial service related to a Privacy Token or involving the use of a Privacy Device¹⁷
- Issue or approve the promotion of a VA related to a Privacy Token or Privacy Device
- Engage in any activities related to a Privacy Token
- Offer a Privacy Token to the Public
3. Algorithmic Tokens
- Provide a financial service related to an Algorithmic Token
- Engage in activities related to Algorithmic Token
- Issue or approve any financial promotion related to Algorithmic Token
- Offer Algorithmic Token to the Public
4. Utility Tokens and Non-Fungible Tokens (NTF’s)
- A licenced entity shall not provide any service or engage in any activity related to Utility Tokens or NTF’s
- The prohibition above does not apply to a licenced entity to conduct custody services or operate a multilateral trading facility for VA, provided prior approval is obtained from CMA
Recognition of Virtual Assets (Green List)¹⁸
In addition to licensing requirements, the CMA has introduced a formal recognition regime for virtual assets. Under this framework, certain virtual assets may be approved and included on a “Green List” maintained by the CMA, indicating that they meet the Authority’s regulatory standards for trading and use within the UAE. Licensed entities, particularly those operating trading platforms, are required to assess and, where applicable, register virtual assets with the CMA prior to making them available to clients. The CMA retains the discretion to add or remove assets from the Green List, as well as to request additional information or reject assets that do not meet the required criteria. This mechanism is intended to enhance market integrity and ensure that only compliant and appropriately vetted virtual assets are accessible within the regulated ecosystem.
Conclusion
The UAE retains its Global position in leading the way when it comes to Regulating Virtual Assets. Whilst some may view such regulation as suffocating, it is quite the opposite. These regulations give welcome comfort to the market, both users and operators, and embraces virtual assets by setting well defined rules, regulation and oversight. It makes sense for the CMA, who are already well versed in traditional capital market and market equity securities, to regulate Virtual Assets. Whilst Virtual Assets are not the same as tradition capital trading assets and marketable equity securities, there are similarities to an extent.
Decision No:4/R.M/2026 is a welcome addition to the UAE Virtual Asset Regulatory Landscape.
Footnotes
¹Law 33/2025, Art 1
² Law 33/2025, Art 1.y
³ Law 33/2025, Art 2.
⁴ Federal Decree Law (33) of 2025, Article 2.4.d.
⁵ General Framework Model, Art 12
⁶ General Framework Model, Art 13
⁷ General Framework Model, Art 14
⁸ General Framework Model, Art 15
⁹ General Framework Model, Art 16
¹⁰ General Framework Model, Art 17
¹¹ General Framework Model, Art 18
¹² General Framework Model, Art 19
¹³ General Framework Model, Art 20
¹⁴ General Framework Model
¹⁵ A VA whose characteristics contain features used or intended to prevent tracking
¹⁶ Privacy device is any technology, digital wallet, mechanism or device (exc VPN’s) containing feature used or intended to prevent tracking
¹⁷ Virtual Asset Service Provider (General Module) Article 5
¹⁸ Art 9, Decision No:4/R.M/2026
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