Dubai's Virtual Assets Regulatory Authority has issued new guidance directing virtual asset businesses to adopt more sophisticated, data-driven approaches to assessing financial crime risks, with particular emphasis on exposure to high-risk jurisdictions under FATF standards.
The guidance does not introduce new rules but reinforces existing AML/CFT obligations, urging firms to link risk assessments to day-to-day compliance controls and ensure board-level accountability. The move signals tougher supervisory expectations as the UAE works to maintain the standards that secured its removal from the FATF grey list in February 2024.
Despite the heightened scrutiny, Dubai's virtual assets ambitions remain undiminished: regulated entities recorded almost AED2.5 trillion in transaction volumes during 2025, according to the Dubai Government Media Office. The guidance follows Binance's recent approval to enable direct dirham deposits and withdrawals through Abu Dhabi Commercial Bank, deepening integration between traditional banking and the UAE's virtual assets sector.
Gulf Economist Staff Writer