Book an appointment with us, or search the directory to find the right lawyer for you directly through the app.Find out more
Welcome to the latest edition of Law Update titled “Rise of Generative AI.”
In this edition, we dive into the dynamic world of Technology, Media, and Telecommunications (TMT) across the Middle East and North Africa (MENA) region. TMT continues to play a vital role in positioning the region as an international business and social hub, driving significant growth and innovation.
Our focus in this Law Update is on the sector’s ongoing potential to advance and propel the region toward a more digital economy. We explore the benefits of embracing a digital transformation and how local authorities have responded by enhancing regulations to accommodate the evolving TMT landscape.
This edition covers a range of topics, including – the new Telecommunications & Information Technology Law in Saudi Arabia, the intricacies of trademarks in the Metaverse, and the legal challenges faced by the video game industry. Additionally, we take a regional perspective, discussing jurisdictions such as Kuwait, Saudi Arabia, UAE, Oman, and Bahrain to provide a comprehensive understanding of the TMT landscape.
We hope you thoroughly enjoy this packed issue of Law Update, filled with captivating articles that address key legal issues within a vital sector for the region.Read the full edition
In continuation of the developments in relation to the regulation of virtual assets in the UAE, the Cabinet has issued Decision No. 111 of 2022 Regulating Virtual Assets and their Service Providers (the “Decision”).
The Decision is applicable to the:
It excludes: (i) virtual asset regimes in the financial free zones; (ii) digital securities and digital commodity contracts; and (iii) payment instruments regulated by the UAE Central Bank.
The Decision prohibits carrying on any of the following activities in the UAE without having obtained approval and license from the Securities and Commodities Authority (“SCA”) or a relevant local licensing authority:
The Decision appears to consolidate the regulation and licensing of virtual asset activities at a federal level by explicitly granting authority to SCA to license and supervise the conduct of virtual asset activities within the UAE. Separately, there appears to be recognition of local licensing authorities such as Dubai Virtual Assets Regulatory Authority (“VARA”), however any license or permissions issued would be subject to overall oversight and control of the SCA. SCA is permitted to delegate any of its functions. This is likely to be confirmed through the implementing regulations and/or further guidance that will likely be issued, noting that the Decision contemplates issuance of regulations required for implementation of the Decision, which are expected to be issued by SCA in coordination with the local licensing authorities.
Under the provisions of the Decision all virtual asset providers in the UAE are required to ensure their compliance of the Decision within three (3) months from the date of its coming into force, unless such period is extended by SCA.
The Decision comes into force thirty (30) days after the date of its publication in the Official Gazette, which was 15 December 2022.
We are equipped to advise potential and existing applicants to understand the regulatory impact of this new regime on their businesses.
Deputy Managing Partner, Head of Banking & Financej.firstname.lastname@example.org
Senior Associate - Consultanta.email@example.com
To learn more about our services and get the latest legal insights from across the Middle East and North Africa region, click on the link below.