UAE Compliance
Introduction
Chain-Fi operates within the United Arab Emirates as a security + identity layer that provides non-custodial Web3 security infrastructure. This page explains how Chain-Fi complies with UAE regulatory requirements.
What Chain-Fi Is NOT
Chain-Fi does NOT:
- Custody funds
- Store private keys
- Transmit virtual assets
- Execute transactions
- Mediate payments
- Act as an exchange
- Act as a broker
- Fall under custodial wallet rules
- Qualify as a money transmitter
- Process fiat payments
- Take control of user funds
This protects Chain-Fi from being misclassified under UAE regulatory regimes.
Applicable Regulations
| Regulation | Applies? | Explanation | Details |
|---|---|---|---|
| VARA Regulations | ⚠ Partial | Does NOT apply as custodial VASP | We do NOT custody virtual assets, store private keys, or operate as a virtual asset service provider with custody (see "What Chain-Fi Is NOT" above). Our non-custodial vaults and identity services fall outside VARA custodial VASP definitions. However, we may assist VASPs with compliance tools. |
| Federal Cryptoasset Laws | ⚠ Partial | Evaluating applicability based on service model | We do NOT custody funds, transmit virtual assets, or operate as an exchange (see "What Chain-Fi Is NOT" above). Federal cryptoasset licensing requirements may not apply to our non-custodial infrastructure services. Ongoing assessment of regulatory developments. |
| AML/CFT Regulations | ✔ | Customer due diligence and monitoring | We implement AML/CFT-compatible controls including customer identification, transaction monitoring, and suspicious activity reporting. See VAT & AML. |
| UAE Data Protection Law | ✔ | Personal data protection compliance | We implement data protection measures including lawful basis for processing, data subject rights, security measures, and cross-border transfer compliance. See Data Protection & Privacy. |
Regulatory Position
Chain-Fi's non-custodial architecture means:
- VARA Registration: Evaluating registration requirements for Dubai operations
- Federal Compliance: Monitoring federal cryptoasset regulatory developments
- AML/CFT Obligations: Full compliance with UAE anti-money laundering requirements
- Data Protection: Compliance with UAE data protection framework
Compliance Framework
VARA (Virtual Assets Regulatory Authority)
- Service classification assessment
- Registration requirements (if applicable)
- Operational compliance
- Reporting obligations
AML/CFT Compliance
- Customer identification and verification
- Enhanced due diligence for high-risk customers
- Suspicious transaction reporting
- Record-keeping requirements
Data Protection
- Lawful basis for processing
- Data subject rights
- Security measures
- Cross-border data transfer compliance
Ongoing Compliance
We continuously monitor:
- VARA regulatory updates
- Federal cryptoasset policy developments
- AML/CFT guidance
- Industry best practices
Contact
For questions about Chain-Fi's UAE compliance posture, please contact our compliance team.
