The Central Bank of the United Arab Emirates (UAE) has issued new guidance for anti-money laundering (AML) and counter-terrorist financing (CTF) measures related to virtual assets. The guidance aims to provide clarity on how virtual asset service providers (VASPs) should comply with UAE AML/CTF regulations.

The guidance outlines specific measures that VASPs should implement, including customer due diligence and ongoing monitoring, risk assessment, and reporting suspicious transactions. The UAE's AML/CTF regulations apply to all virtual asset activities that take place within its borders, including those conducted by offshore service providers.

The move comes as part of a wider push by the UAE to establish itself as a leader in the cryptocurrency space. In recent years, the country has taken steps to attract blockchain and cryptocurrency businesses, with the introduction of regulatory frameworks and initiatives aimed at fostering innovation in the sector.

The new guidance from the UAE Central Bank is an important step towards creating a robust framework for regulating virtual assets in the country and ensuring that they are not used for illicit purposes. As cryptocurrencies continue to gain mainstream acceptance, it is clear that governments and regulators will need to establish a clear regulatory framework to ensure that these assets can be used safely and securely.