The United Arab Emirates is reportedly planning to issue a federal crypto license for virtual asset service providers by the end of the first quarter.

The UAE Securities and Commodities Authority is reportedly in the final stages of finalizing legislation that would allow digital asset firms to set base in the country, reported Bloomberg. A national crypto licensing legislation would help the UAE with its goal to become a leading crypto-friendly jurisdiction.

The regulators reportedly considered the Paris-based Financial Action Task Force guidelines and ongoing crypto policies in the United States, United Kingdom and Singapore for framing its crypto license legislation. The new crypto license would reportedly take a hybrid approach where the chief regulatory body would handle regulations in consultation with the central bank, while local financial institutions can develop their own native license guidelines.

Apart from the crypto license, the UAE government is also planning on building and regulating the crypto mining industry.

As Cointelegraph reported earlier, UAE regulators have been working toward formulating laws that would pave way for crypto and blockchain adoption. The newly reported crypto licensing and mining legislation could be one step closer to that. Earlier in December 2021, the government declared the Dubai World Trade Centre (DWTC) as a comprehensive zone and a regulator for cryptocurrencies.

Related: Dubai regulator announces new regulations for investment tokens

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