The Central Bank of the United Arab Emirates has issued new guidelines to penalize local virtual asset service providers that operate without a license.

The Central Bank of the United Arab Emirates (CBUAE), in conjunction with other regulators in the country, recently issued new guidelines for virtual asset service providers (VASPs) operating in the country, which include penalties for VASPs operating without appropriate licenses in the jurisdiction. Under the new guidance, the supervisory authority expects all licensed financial institutions (LFIs), designated non-financial businesses and industries (DNFBPs) and licensed VASPs to report transactions by suspicious parties. The central bank also noted that VASPs operating in the UAE without a valid license will be subject to "civil and criminal penalties, including but not limited to financial sanctions against the entity, owners and senior managers." In addition, the document also emphasizes that LFIs, DNFBPs and licensed VASPs will also be punished by law enforcement if they show a willingness to enter into transactions with unlicensed VASPs. (Cointelegraph)