Regulatory amendments on virtual assets: Proposed changes include removing the requirement for issuing warning notices when licensing financial services, as well as prohibiting payment service providers from processing cash transactions. This is seen as a positive step toward ensuring compliance with FATF recommendations.

Update on asset classifications: The amendments maintain the current digital asset classifications: securities, virtual assets, derivatives, utility tokens, and fiat tokens. This reflects FSRA’s alignment with global regulatory frameworks.

Commitment to reforms and regulations: Mazen Rasamny, managing partner at Rasamny Legal, emphasized that these reforms reinforce FSRA’s commitment to compliance with AML/CFT and market integrity. He predicts significant changes in the virtual asset regime in the near future.

Encouragement for feedback: Rasamny Legal also encourages market participants to review the consultation paper and submit their feedback to shape the future of virtual asset regulations in the UAE.