- The UAE seeks to expand into a welcoming center for cryptocurrencies.
- UAE Cabinet announced a label rule and an independent regulating body for virtual assets.
Thani Al-Zeyoudi, the UAE’s minister of state for international trade, highlighted that the country has gained a great deal of knowledge from the cryptocurrency industry and must now adopt the appropriate regulations to promote continued growth.
According to Thani Al-Zeyoudi, cryptocurrency will soon play a significant role in the country’s international trade. Additionally Al-Zeyoudi stated that, as the UAE evolves its regulatory regime for cryptocurrencies, the emphasis would be on turning the Gulf nation into a hub with crypto-friendly regulations and adequate security measures.
The First Regulatory Framework
The UAE seeks to expand into a welcoming center for cryptocurrencies. Its adaptable regulatory framework for cryptocurrencies is enticing several cryptocurrency companies. Cryptocurrency exchanges like Binance, Kraken, and Crypto.com already provide their services in the nation.
Last week, the UAE Cabinet announced a label rule and an independent regulating body for virtual assets and virtual asset service providers. The action is the state’s first regulatory framework for the industry at the federal level.
As a result of the new rule, companies that don’t comply risk fines of up to $2.7 million. In September, the financial regulator of Abu Dhabi’s Global Market free economic zone published the “Guiding Principles” for the regulation and supervision of digital assets. This action expands upon those principles.
And, one of the most tragic events was the FTX collapse. As per reports, 4% of FTX’s customers are headquartered in the UAE. Global cryptocurrency customers, including those in the UAE, impacted by the FTX collapse.