The UAE has moved fast to build out a regulatory framework for digital assets. Joining me is Rahul Kumar, Head of Digital Assets MENA at Capital.com. Rahul, welcome to Wall Street to Mena.
Thank you for having me.
Walk us through what the UAE's digital asset regulatory framework actually looks like on the ground for a platform like Capital.com.
The UAE is at the forefront of the digital asset framework. Globally, over 30% of UAE residents own cryptocurrency. Here in the UAE there are four main regulators — the Capital Markets Authority, which is the federal regulator governing virtual assets, then VARA based in Dubai, and the two free zones ADGM and DIFC. At Capital.com, we decided to embark on our licensing journey last year. It kicked off around July 2025.
What does the licensing process actually involve?
The first thing you have to do as a business is figure out your business model — what type of products you are going to offer. Then you identify which regulator is most appropriate for your needs. We decided to go with the Capital Markets Authority, given that Capital.com is already regulated by them for our CFD and equities business. The licensing process with the CMA is split into two phases. Stage one is up until initial principal approval, where you present your business model and proposed governance structure. Following successful phase one, you then incorporate your entity — we incorporated Capital Vault — and set up our office in Abu Dhabi. We then made certain strategic key hires to fulfil the licensing requirements. Stage two took us about six months. We managed to get the licence in the first week of July. In total it was a 12-month process.
You also sit on MFTA's regulatory working group. What does that work involve?
MFTA does a fantastic job bridging the gap between regulators and firms. When I first moved to the UAE four years ago, MFTA was a great way to understand from other professionals the different nuances between the different regulations — given that we have four regulators here. Most recently, MFTA took part in the FSRA's roundtable, which was behind closed doors, where we looked to provide input into upcoming regulations.
How does UAE's approach compare to Singapore, Hong Kong, or MiCA?
The UAE has always been one of the first movers. In the last five or six years, UAE had crypto regulation within the region. MiCA within Europe — the key difference is that MiCA allows you access to the whole European market. You can passport across. Here in the UAE, you can only operate within the UAE. If you wanted to then go into other GCC countries with a crypto framework, you would need to apply for that particular regulation within each jurisdiction.
What are regulators and the industry still actively working through together?
The talk of the town now is prediction markets. The FSRA is working with a number of financial regulators within the UAE on this. I think that will probably be the next key milestone in terms of where regulators are focusing.
Thank you so much, Rahul, for being here with us.
Thank you.
