The UAE's financial regulatory agency, the Securities and Commodities Authority (SCA), has announced that it will start receiving licensing applications from virtual asset service providers (VASPs) that want to operate within the country. All VASPs operating in the UAE must submit an application and obtain a license from the SCA, except for those licensed in the country's financial free zones. Digital asset companies operating within Dubai will still have to comply with its own financial regulator, the virtual asset services authority (VARA), and also need to apply for and obtain a license from VARA. The UAE's Cabinet issued resolution number 111 of 2022 on Dec. 11, 2022, which regulates virtual assets to provide an "attractive investment, economic and financial environment for global companies and institutions operating in the virtual assets sector." Failure to comply with the new law could result in financial fines of up to 10 million AED ($2.7 million), disgorgement of profits and criminal investigation by the public prosecutor.