Weekly Spotlight: Launch of a New Residency System for Expatriates in Dubai

Dubai’s Ruler and the UAE’s Vice President has announced the launch of a new residency system for expatriates. Under the Golden Card Scheme, residency for qualifying investors, entrepreneurs, those with special talents, researchers and outstanding students will be available. The spouses and children of Golden Card holders will also be able to obtain permanent residency under the scheme.

6800 expatriates from more than 70 countries have already been selected for the scheme. The investors are worth. an estimated 100 billion AED. The new permanent visa will generate foreign investment, encourage entrepreneurship, and attract top engineers, scientists and students. Exact criteria for the visa are yet to be made public but more details are expected in the coming days.

In the past, foreign residents typically had renewable visas valid for two or three years which were often tied to their employment. However, last year the government announced plans to reform its visa policies.

Weekly Spotlight: Amendments to the Abu Dhabi Global Market’s Crypto Asset Activities Guidance

Abu Dhabi Global Market’s Financial Services Regulatory Authority has amended its Crypto Asset Activities Guidance. The Guidance was first issued in mid-2018 and has since been amended twice. It was the first guidance of its kind when it was published then. The amended Guidance includes key updates on Stablecoins and Fiat Tokens, Custody, Technology Governance and Anti-Money Laundering and Sanctions Rules and Guidance.

Stablecoins which are fully backed by fiat currencies (Fiat Tokens) will be treated as a form of digital currency. When they are used as a payment instrument for Money Transmission which is defined under the Global Market’s Financial Services and Markets Regulations 2015, the activity will be licensed and regulated as Providing Money Services. The amended guidance also sets out the Authority’s approach to regulating issuers, custodians and exchanges using Fiat Tokens. The amended guidance provides further clarity on the types of crypto asset custody activities which can be undertaken and sets out the Authority’s expectations in terms of custody governance and operations.

In addition, there are amendments to the technology governance provisions in the guidance. For example, there are changes in the underlying protocol of a crypto asset which results in a fork or coding change, and the associated governance and control expectations for crypto asset exchanges and license holders.

Finally, the guidance has been amended to reflect the latest changes in anti-money laundering and sanctions changes and there is additional clarity on the use of new regulatory and surveillance technologies in this area.