SCA Digital Assets License in UAE: Requirements, Application Process, and Benefits
- Yiannos Ashiotis
- Nov 17
- 5 min read
The UAE is rapidly becoming one of the world’s most progressive jurisdictions for digital asset regulation. At the center of this evolution is the Securities and Commodities Authority (SCA) - the federal regulator responsible for governing virtual asset activities across the UAE mainland.
For businesses aiming to launch virtual asset platforms, exchanges, brokerage services, custody solutions, or token-related activities, understanding the SCA’s licensing framework is not just beneficial - it is essential.
This guide breaks down everything you need to know about the SCA Digital Assets License in the UAE, from what it covers to how the process works and what you should prepare for.
Understanding the Securities and Commodities Authority (SCA)
The Securities and Commodities Authority (SCA) is the UAE’s federal regulator overseeing securities, commodities, and - following Cabinet Resolution No. 111 of 2022 - virtual assets.
Unlike free-zone regulators such as ADGM or DIFC, which operate within limited geographic borders, the SCA’s jurisdiction covers the entire UAE mainland.
This positions the SCA as the primary regulator for companies seeking:
federal recognition,
nationwide market access, and
alignment with the UAE’s national digital asset strategy.
What Is the SCA Digital Assets License in the UAE?
The SCA Digital Assets License is the formal federal authorization granted to a Virtual Asset Service Provider (VASP) to legally conduct digital asset activities within the UAE mainland.
Obtaining this license signals that your business is:
fully compliant with UAE federal regulations,
recognized as a regulated operator in a mature environment,
trusted to service UAE mainland customers, and
operating under a modern, purpose-built digital asset framework.
For serious operators, this license represents the foundation for long-term, compliant, and scalable growth.
Who Needs an SCA License? (Activities Covered)
If your business conducts any of the following regulated activities, SCA authorization is mandatory:
Virtual Asset Platform Operation
Running trading venues where clients buy, sell, or exchange virtual assets.
Exchange Services
Converting between digital assets or between digital assets and fiat currencies.
Transfer Services
Executing or facilitating virtual asset transfers for clients.
Brokerage Services
Acting as an intermediary to execute virtual asset trades under best-execution standards.
Custody Services
Safekeeping digital assets with robust controls, insurance, and cybersecurity oversight.
Token Issuance Services
Supporting token offerings or providing related financial advisory services.
Under UAE federal law, engaging in these activities without authorization constitutes non-compliance.
Why Companies Choose SCA Licensing
The SCA licensing framework provides significant strategic advantages:
Purpose-Built for Digital Assets
Its rules are designed specifically for virtual assets - not adapted from legacy securities regulations.
Nationwide Recognition
The license applies across the UAE mainland, enabling broader commercial reach.
Regulatory Clarity and Predictability
The SCA continuously refines its standards to remain aligned with international best practices.
Institutional Trust
Banks, investors, and partners view SCA licensing as a marker of operational readiness and maturity.
Future-Proof Structure
Regulations evolve frequently to support new digital asset models, ensuring long-term resilience.
Capital Requirements for SCA Licensing
Per SCA Rulebook Module 4, minimum capital requirements vary by activity type:
Platform Operator (standalone): AED 1 million
Platform Operator (with other services): AED 5 million
Custody Services: AED 4 million
Portfolio Management: AED 3 million
Brokerage Services: AED 2 million
Financial Consulting: AED 500,000 + AED 1 million insurance
Principal Trading (Own Account): AED 30 million
Platform operators must also maintain six months of operating expenses.
The Licensing Journey
The SCA licensing process is structured, thorough, and designed to assess both regulatory understanding and operational readiness. There are two critical phases.
Phase 1: No Objection Certificate (NOC)
Applicants must:
Establish a UAE-domiciled legal entity
Submit corporate documentation, including:
Memorandum and Articles of Association
Commercial License
Chamber of Commerce Certificate
Provide proof of proper licensing for any foreign parent entity (if applicable)
Typical duration: a few weeks, depending on documentation quality.
A clean NOC submission significantly reduces delays.
Phase 2: Full Licensing
The full licensing stage involves comprehensive documentation across three pillars:
1. Compliance Frameworks Including:
AML/CFT procedures under Federal Decree-Law No. 20 of 2018
KYC standards
Cybersecurity protocols
Risk management
Business continuity planning
Internal audit procedures
2. Operational Infrastructure Covering:
Technology stack and platform architecture
Client asset segregation
Order execution and trade recording systems
Market abuse prevention
Complaints handling mechanisms
3. Supporting Documentation Such as:
Audited financial statements
Proof of capital adequacy
Cybersecurity assessments
Insurance certificates
Banking references
Expected duration: 4–6 months, depending on the complexity of the business model and completeness of submissions.
Key Personnel Requirements
The SCA requires experienced, senior-level appointments, including:
Chief Executive Officer (CEO)
Chief Compliance Officer (CCO)
Chief Risk Officer (CRO)
Chief Technology Officer (CTO)
Money Laundering Reporting Officer (MLRO)
Both the MLRO and CCO must have a minimum of three years of hands-on AML/compliance experience within financial services or virtual assets.
Business Plan Expectations
Your business plan must clearly demonstrate:
Understanding of the UAE virtual asset landscape
Defined business activities and target customer segments
Market positioning
Suitability assessments
Realistic, scalable operational models
Three-year financial projections
The SCA looks for clarity, credibility, and readiness - not generic or template-based plans.
Timeline Expectations
Most applicants complete the licensing process in 4-6 months, assuming:
accurate documentation,
strong internal controls, and
knowledgeable local advisors.
Novel business models or insufficient documentation may extend timelines.
Ongoing Compliance Obligations
After approval, licensed entities must maintain continuous regulatory adherence:
Annual regulatory updates
Quarterly filings demonstrating capital adequacy
Internal and external audits
Cybersecurity monitoring
Risk framework updates
Customer due diligence & transaction monitoring
Suspicious activity reporting (SAR) via goAML
Dynamic compliance enhancements as regulations evolve
The SCA expects ongoing, proactive compliance, not one-time submissions.
Why Work With Pnyx Hill
Securing an SCA Digital Assets License in the UAE requires deep regulatory knowledge, hands-on operational understanding, and a structured, detail-oriented approach.
Pnyx Hill offers:
End-to-end support from NOC to full authorization
UAE-based GRC and digital asset expertise
Compliance framework development
Operational readiness assessments
Regulatory response management
Practical, senior-level guidance at every stage
Our team helps clients build credible, compliant, and scalable digital asset operations in the UAE.
Final Thoughts
The SCA Digital Assets License offers businesses an opportunity to operate under a forward-thinking, globally aligned regulatory framework.
For companies serious about entering the UAE’s digital asset ecosystem - or expanding into the broader UAE mainland market - this license provides the foundation for long-term success.
If you’re considering the SCA route, our advisory team is ready to support your licensing journey with clarity, experience, and precision. Contact our advisory team for more details.