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The United Arab Emirates (UAE) has released new guidance to combat the use of unauthorized digital assets by providers in order to protect the integrity of the country’s financial system. The guidance, issued by the UAE and the National Anti-Money Laundering and Combating Financing of Terrorism and Financing of Illegal Organizations Committee (NAMLCFTC), aims to educate licensed financial institutions and the public sector on the risks associated with unlicensed virtual asset service providers. It aligns with the regulatory guidelines set by the Financial Action Task Force (FATF) on virtual assets and service providers. The guide emphasizes the need for financial service providers to manage risks, exercise due diligence, and apply a systematic approach to digital assets. It also encourages institutions to identify and report suspicious transactions and comply with anti-money laundering legislation. The new guide is supported by penalties for non-compliance, including civil and criminal penalties for crypto service providers. Financial entities operating without proper licenses or controls may face enforcement action. Overall, the guidance provides a comprehensive roadmap for enhancing governance and operational processes in the UAE’s digital asset sector.