UAE and UK financial regulations evolve for asset managers and crypto firms

Financial regulatory frameworks in the United Arab Emirates and the United Kingdom are evolving, impacting asset managers and cryptocurrency firms.

In the UAE, the Abu Dhabi Global Market (ADGM) Category 3C license provides a pathway for fund and asset managers. This license supports two models: discretionary asset management for individual mandates and the management of collective investment funds. The regulatory process involves specific capital requirements, ranging from US$50,000 to US$250,000 depending on the model, and requires adherence to Financial Services Regulatory Authority (FSRA) governance and substance standards.

Simultaneously, the United Kingdom is expanding the regulatory perimeter of the Financial Conduct Authority (FCA) to include a wider range of cryptoasset activities. UAE-based crypto businesses that market to, onboard, or serve UK-based clients—even without a physical presence in the UK—must prepare for these incoming rules. The expanding regime is expected to cover activities such as exchange, custody, staking, and intermediation, requiring firms to secure UK authorisation or recognized exemptions to continue serving UK investors.