The UAE Cabinet of Ministers has issued a new Cabinet Decision No. 99 of 2024, which establishes a list of violations and administrative fines for non-compliance with the provisions of Cabinet Decision No. 111 of 2022 on the Regulation of Virtual Assets and Virtual Asset Service Providers.
Carrying out activities without a license related to virtual assets is subject to a fine of AED 500,000. The fine increases for repeated violations, and by the fourth case of recidivism it reaches AED 4 million. It is the maximum fine under the new Decision.
Virtual asset platform operators are subject to the fine of AED 100,000 if they fail to fulfill their obligations, increasing to AED 200,000 in case of recidivism. The requirements for platform operators are spelled out in the Securities and Commodities Authority Decision No. 26 of 2023 Regulating the Virtual Asset Platform Operator. For example, a platform operator is punished by a fine for issuing paper certificates of ownership.
Service providers related to virtual assets are also subject to the fine of AED 200,000 if involved in any fraudulent schemes. The fine reac...