The United Arab Emirates plans to use cryptocurrencies for trade in the future and will set a practical regulatory framework, according to the country’s foreign trade minister.
Thani Alzeyudi speaking with Bloomberg on Jan. 20 in Davos, Switzerland, where the World Economic Forum Annual Meeting is being held. Said The United Arab Emirates is considering trading in currencies other than the US dollar. One of his areas the country is looking to expand into is cryptocurrency, he said, adding:
“Cryptocurrencies will play an important role in UAE trade going forward. Most importantly, ensuring global governance regarding cryptocurrencies and cryptocurrency companies.”
Al-Zeyoudi added that the UAE continues to work on its cryptocurrency regulatory regime. He said the focus is on making the Gulf countries a major hub with crypto-friendly policies, with adequate protections in place.He said the country has already made some improvements in this area. said he was looking at
“We have started to attract some companies to the country with the aim of building together the proper governance and legal system that is needed.”
The comments from Al-Zeyoudi came a day after Omar Sultan Al Olama, the UAE’s Minister of State for Artificial Intelligence. Said That the country remains committed to its goal of becoming a global cryptocurrency hub, despite recent events plaguing the crypto market, including unprecedented ones. Collapse of FTX.
“It’s definitely a positive thing for them to call the UAE home,” Orama said, hinting that the cryptocurrency exchange will move to Dubai and Abu Dhabi, partly due to the cryptocurrency regulations the UAE issued last year. He was killed.
Orama has refuted claims that the UAE could become a safe haven for cryptocurrency criminals. He also said the government needs to work together to identify and stop bad actors.
“You will see them everywhere. You will see them in the Bahamas, New York, London. If he does something wrong, it’s to keep him stuck… from one place to another,” Orama said.
It is worth noting that the UAE Cabinet recently introduced A new regulation mandating entities engaging in cryptocurrency activities to secure licenses and approvals from the Virtual Asset Regulatory Authority (VARA). Companies that do not comply can face fines of up to $2.7 million.
The latest regulations add to the Guiding Principles on the Regulation and Supervision of Digital Assets issued in September by the Financial Regulators of the Global Markets Free Economy Area in Abu Dhabi.