Crypto funds gain momentum as UAE enters a new phase of institutional digital asset investment
Vanessa Abernethy, Co-Founder of Oryx Legal Consultants, examines how the UAE’s digital asset fund market is evolving as institutional interest grows and regulatory scrutiny increases. What is changing in the UAE digital-assets investment market? The UAE’s digital-assets investment market is becoming increasingly institutionalised. Digital assets are moving beyond specialist crypto investors and…
The UAE’s digital asset fund market is becoming more institutionalized, with traditional investors and fund managers entering the scene. This shift is driven by the growing interest in digital assets and increasing regulatory scrutiny. As more institutional players join the market, they bring expectations around regulation, governance, risk management, reporting, and operational infrastructure that align more closely with traditional investment structures.
This evolution marks a transition from an early-stage, crypto-native ecosystem to a more mature institutional investment environment.
Regulators in the UAE have also adapted to the changing landscape. The Dubai Financial Services Authority (DFSA) is placing greater responsibility on firms to demonstrate their compliance with regulatory obligations. To meet these requirements, firms must be able to clearly evidence their assessment of crypto currencies included in fund structures and their compliance processes right from the beginning.
Oryx Legal Consultants, a firm with experience in both traditional fund structures and digital asset regulation, is witnessing this first-hand as they advise their clients.
Before setting up a digital-asset fund, fund managers and investors must carefully consider several factors. While the choice between the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM) is often a primary consideration, it is not the most critical decision. Instead, sponsors need to assess the legal, operational, and governance implications of each proposed structure.
This assessment requires a clear understanding of the unique challenges and opportunities presented by digital assets within different regulatory environments. Consulting with a firm that has experience in both traditional fund structures and digital asset regulation can provide valuable insights during this crucial stage, helping sponsors make informed decisions before establishing their funds.
Written by urgent.news from Gulf News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
