UNITED ARAB EMIRATES Law and Practice Contributed by: Arnold Krutilins and Gabrielle Margerison (nee Lowe), White & Case LLP
platform will constitute the regulated financial activity of “operating an MTF or OTF”. Specifically, operating an MTF or an OTF on which financial instruments or virtual assets are traded are each considered separate regulated activities. Carrying on any other ancillary activities deemed suitable by the FSRA for the MTF or OTF to conduct is also its own regulated financial activity. 6.2 Regulation of Different Asset Classes With the exception of virtual assets regulated sep - arately by the VARA, the application of the UAE’s regulatory regimes is not generally premised on dis - tinctions between asset classes (although certain regulatory rules may apply in respect of a particular asset class), but rather on the type and nature of the Both the FSRA and the DFSA have amended their regulatory frameworks over the last few years to bring virtual assets, investment tokens and crypto tokens within the scope of their rules and regulations. Most notable, however, is the establishment of the VARA’s regulatory framework and authority in the emirate of Dubai in 2022 and further developed in 2023 and 2024. financial activity being conducted. 6.3 Impact of the Emergence of Cryptocurrency Exchanges The VARA is the only regulatory authority in Dubai that is exclusively dedicated to the licensing and supervi - sion of virtual assets and related activities. The activi - ties captured under the VARA’s jurisdiction include the establishment and operation of cryptocurrency exchanges. VARA published Version 2.0 of its activity- based rulebooks in May 2025 (effective June 2025), including strengthened controls relating to leveraged activity (including margin trading) and token distribu - tion services. 6.4 Listing Standards Various listing standards exist in order to safeguard and maintain market confidence and ensure a fair, informed and orderly market. For instance, both the DFSA and the FSRA set out the following listing prin - ciples in their Markets Rulebooks:
• A listed entity must take reasonable steps to ensure that its senior management and any other relevant employees understand and comply with their responsibilities and obligations. • A listed entity must take reasonable steps to estab - lish and maintain adequate policies, procedures, systems and controls to enable it to comply with its obligations. • A listed entity must act with integrity towards hold - ers and potential holders of its listed securities. • A listed entity must communicate information to holders and potential holders of its listed securities in such a way as to avoid the creation or continua - tion of a false market in the listed securities. • A listed entity must deal with the competent regulatory authority in an open and co-operative manner. • A listed entity must ensure that it treats all hold- ers of the same class of its listed securities equally in respect of the rights attaching to these listed securities. The FSRA’s Market Rules set out the following addi - tional listing principles: • The structure and operations of a listed entity must be appropriate for it. • A listed entity must ensure that the terms that apply to each class of its securities are appropri - ate and fair, taking into account voting and other rights. 6.5 Order Handling Rules The CMA Rulebook sets out various order handling requirements, including in respect of receiving, aggre - gating and executing trade orders and the notification of the execution of a trade order and in its settlement. Both the FSMR and the DIFC Markets Law 2012 set out provisions in respect of stop orders which may be issued by the FSRA and the DFSA respectively with regards to listed securities (or crypto tokens in the case of the DIFC). 6.6 Rise of Peer-to-Peer Trading Platforms Peer-to-peer trading is in its nascent stages in the UAE. However, the key challenge posed by peer-to- peer trading is the relative lack of regulatory over - sight in comparison to traditional trading platforms or
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