Weekly Spotlight: Abu Dhabi Global Market Launches Crypto Asset Regulatory Framework

This week the spotlight is on regulatory developments in the Abu Dhabi Global Market, where their Financial Services Regulatory Authority has launched its framework to regulate spot crypto asset activities, including those undertaken by exchanges, custodians and other intermediaries in the Global Market. The framework has been introduced following the conclusion of a public consultation which was launched by the Global Market’s Financial Services Regulatory Authority and ended on 28 May 2018.

The framework is designed to address the full range of risks associated with crypto asset activities, including money laundering and financial crime, consumer protection, technology governance, custody and exchange operation risks. As a result of feedback received during the consultation, several refinements have been made to the regulatory framework. One of the most significant changes is the implementation of a Daily Value Trading Levy which will be imposed on Crypto Asset Exchanges on a sliding scale.

In addition, the Financial Services Regulatory Authority has published its Guidance-Regulation of Crypto Asset Activities in the Global Market and application form for interested applicants to operate a crypto asset business in the Global Market. The Guidance elaborates on the Market’s approach towards the regulation of crypto asset activities and is a useful resource for interested applicants.

Weekly Spotlight: A Series of Employment and Immigration Developments in the UAE

This week the spotlight is on employment and immigration developments in the UAE, where additional changes to the country’s visa system and an upcoming amnesty for illegal residents have been announced by the Cabinet at its latest session. These changes are in line with earlier announcements, including the introduction of a new insurance scheme which will replace the bank guarantees system in the country. In the last quarter of 2018, a new one-year permit will be introduced for women and their children residing in the UAE without a visa sponsor due to certain circumstances including a divorce or death of their husband. Currently, no similar provision is guaranteed in the immigration regulations and the decision of allowing residency in these cases is discretionary.

Nationals of countries affected by war or natural disasters will be offered an extendable one-year residency permit free of charge, regardless of their current visa status. No specific list of countries has been issued yet. According to the announcement, the regulation will be in effect from 1 August until 31 October 2018.

Finally, the Federal Authority for Identity and Citizenship has announced an amnesty initiative called ‘Protect Yourself by Modifying Your Status’ which is expected to be launched in the coming weeks. The programme is aimed at allowing illegal residents in the UAE to correct their immigration status. Foreign nationals will have a choice to depart from the country without paying fines and without an immigration ban, or to change their status to employment. Those who entered illegally will be allowed to depart and will be issued with a two-year immigration ban.

UAE: The New Arbitration Law Has Been Gazetted

This week the spotlight is on legal developments in the UAE where the long-awaited and much anticipated Arbitration Law has been Gazetted. Federal Law No. 6/2018 will apply to all local arbitrations taking place in the UAE, unless agreed otherwise. It will also apply to any international commercial arbitration taking place outside the UAE, where the parties have agreed to apply UAE arbitration law and all arbitrations arising as a result of a contractual or non-contractual relationship governed by UAE law, unless expressly excluded. We have priority requested this important legislative development from our publishing partners, SADER Legal Publishing and we will keep you updated on its progress. The Law will replace the arbitration provisions in Federal Law No. 11/1992. We have been delighted to include analysis of this important legislative development from Afridi & Angell, Al Tamimi & Company, BSA Ahmad Bin Hezeem & Associates LLP, Clyde and Co, Hogan Lovells and Pinsent Masons LLP and their insights can be viewed under the Commentary section of Lexis Middle East Law (www.lexismiddleeast.com).

Weekly Spotlight: Ownership of Emirati Companies by Foreign Entities in the Mainland to Be Allowed

This week the spotlight is once again on the UAE where the Cabinet has announced two key investment rule changes. Under the changes, ownership of Emirati companies by foreign entities in the mainland will be allowed. Previously this was only allowed in the free zones. The change will come into effect in the third quarter of this year. The Cabinet also approved a new long-term visa system aimed at attracting international investors and high-skilled professional workers. Investors, scientists, doctors, engineers, entrepreneurs and innovators will be able to apply for a 10-year visa.

We have been delighted to include analysis of this important legislative and regulatory development from BSA Ahmad Bin Hezeem & Associates LLP and K&L Gates LLP, and their insights can be viewed under the Commentary section of our website.

Weekly Spotlight: UAE Arbitration Law Finally Published

This week the spotlight is firmly on the UAE where the long-awaited and much anticipated Arbitration Law has been published. Federal Law No. 6/2018 on Commercial Arbitration has not yet been Gazetted but it has been priority requested from our publishing partners, SADER Legal Publishing and we will keep you updated on its progress. The Law will replace the arbitration provisions in Federal Law No. 11/1992. We have been delighted to include analysis of this important legislative development from Afridi & Angell, Al Tamimi & Company and Hogan Lovells and their insights can be viewed under the Commentary section of Lexis Middle East Law (www.lexismiddleeast.com).