According to the country’s Minister of State for Foreign Trade, the UAE plans to use crypto for trade in the future and is also setting up a working regulatory framework.
Thani al-Zayoudi speaking with Bloomberg on January 20 in Davos Switzerland, where the annual meeting of the World Economic Forum is taking place Told The UAE is considering trading in currencies other than the US dollar. One area the country is looking to expand into is cryptocurrencies, he said:
“Crypto will play a major role in UAE business going forward. Most importantly, we ensure global governance when it comes to cryptocurrencies and crypto companies.”
Al-Zayodi added that the UAE continues to work on its crypto regulatory regime. The focus will be on making the Gulf country a major hub with crypto-friendly policies that also have adequate security, he added. He said that the country has already seen some improvement in this area.
“We started attracting some companies in the country with the aim that together we will build the right governance and legal system that is needed.”
Al-Zayodi’s comments come just a day after Omar Sultan Al Olama, UAE’s Minister of State for Artificial Intelligence. Told The country remains committed to its goal of becoming the world’s cryptocurrency hub regardless of recent events in the crypto market, including the unprecedented one. The Fall of FTX,
“It is definitely a positive thing to call the UAE home,” Olma said.
Olma denied allegations that the UAE could become a safe haven for crypto criminals. He also said that governments should work together to identify and stop bad actors.
“You’ll see them everywhere. You’ll see them in the Bahamas, you’ll see them in New York, London, and what we need to do as governments is to work together with industry to make sure that if something does wrong then he cannot move from one place to another,” said Olama.
It is noteworthy that recently the UAE cabinet started New regulation that mandates entities engaged in crypto activities to obtain license and approval from the Virtual Asset Regulatory Authority (VARA). Companies that fail to comply could face fines of up to $2.7 million.
The latest regulation adds to the “guiding principles” for digital asset regulation and supervision that were published in September by the financial regulator of Abu Dhabi’s Global Markets Free Economic Zone.
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