According to the nation’s minister of state for foreign trade, the United Arab Emirates intends to utilize cryptocurrency for trade in the future and to set up a functional regulatory framework.
In Davos Switzerland, Thani Al-Zeyoudi stated the UAE is investigating the trade in currencies other than the US dollar. He added, they are seeking to develop in a number of areas, including cryptocurrency.
For UAE trade in the future, cryptocurrency will be crucial. When it comes to cryptocurrencies and crypto firms, it’s crucial to ensure global governance.
Al-Zeyoudi stated that the UAE’s regulatory framework for cryptocurrencies is still under development. He claimed that the goal is to turn the Gulf nation into a significant hub with crypto-friendly regulations and adequate security measures. The nation has already experienced some progress in this area, he said.
With the intention of jointly creating the necessary governance and legal framework, they began luring certain businesses to the nation.
The remarks from Al-Zeyoudi come a day after Omar Sultan Al Olama, the UAE’s minister of state for artificial intelligence, said that despite recent events affecting the cryptocurrency market, such as the collapse of FTX, the country is still committed to becoming the world’s hub for cryptocurrencies.
It is undoubtedly advantageous for them to call the UAE home, Olama suggested, alluding to cryptocurrency exchanges relocating to Dubai and Abu Dhabi in part due to the UAE’s virtual asset legislation that was released last year.
Olama denied claims that the UAE would turn into a refuge for cryptocurrency criminals. Governments should cooperate in order to spot and put an end to negative actors, he added.
They’re all over the place. They may be found in London, New York, and the Bahamas. As governments, they must collaborate with the business community to make sure that if someone does something wrong, he cannot go from one location to another, Olama said.
It is important to note that the UAE Cabinet has passed a new law requiring organizations involved in cryptocurrency activities to obtain a license and permission from the Virtual Asset Regulatory Authority (VARA). A fine of up to $2.7 million might be imposed on the businesses that don’t comply.
The most recent rule supplements the “Guiding Principles” for digital asset regulation and supervision that were released in September by the financial regulator of the Global Market free economic zone of Abu Dhabi.
