The United Arab Emirates is reportedly having plans down their pipelines to introduce a federal crypto license for virtual asset service providers, by end of Q1 this year. 

Specifically, The UAE Securities and Commodities Authority is reportedly in the last phase of completing the legislation, which will enable virtual asset entities to establish their operations in the nation, per Bloomberg. 

A national crypto licensing legislation would reportedly contribute greatly to the ultimate target of the country to turn into a leading pro-crypto jurisdiction.

The regulators are reportedly looking closely at the Paris-based Financial Action Task Force guidelines and ongoing crypto policies in America, the UK, and Singapore to take reference for its crypto license legislation.

The new crypto license reportedly aims to employ a hybrid approach,  with the primary regulatory body taking charge of regulations in consultation with the central bank, while local financial institutions are free to come up with their self-developed native license guidelines.

Aside from the crypto license, the UAE authority is reportedly also having plans down their pipeline to design and regulate the crypto mining sphere. 

Previously, UAE regulators have reportedly been investing their resources in designing regulations that aim to pave the way for crypto and blockchain adoption. The freshly reported crypto licensing and mining legislation could be a major stride towards that goal.

In December last year, the authority reportedly issued a declaration of considering the Dubai World Trade Centre (DWTC) as a comprehensive zone and a regulator for cryptocurrencies.

Top-tier crypto exchange Binance is reportedly doing their bid in preparation for setting foot in the UAE market, as it signed an exclusive memorandum of understanding with the DWTC in December.