Capital.com Plans UAE Spot Crypto Trading After Capital Vault Gets CMA License: 11 outlets compared

Spot crypto in UAE

The license allows Capital Vault to deal in virtual assets as an agent or matched principal and to custody client assets, and once the service launches UAE clients will be able to buy and hold actual cryptocurrencies through the Capital.com app.

The spot service is described as a departure from Capital.com’s existing contracts-for-difference, or CFD, model, which gives users exposure to price moves without direct ownership of the underlying asset.

Capital Vault will oversee order execution, custody and settlement, and it operates as an independent regulated entity with governance, custody and risk-management systems separated from Capital.com’s other business units.

Regulatory framework and setup

The approval follows the UAE Capital Market Authority’s introduction of a virtual-asset regulatory framework in April, when the regulator expanded the number of regulated activities to eight from three.

The framework is described as adding requirements covering conduct standards, alternative trading systems, anti-money-laundering controls and prudential rules, and it is also said to establish a public register of licensed virtual-asset service providers.