According to the country’s minister of state for international trade, the United Arab Emirates intends to employ cryptocurrencies for commerce in the future and to develop a legal framework.
Thani Al-Zeyoudi told Bloomberg on January 20 in Davos, Switzerland, where the annual World Economic Forum conference is held, that the UAE is investigating trading in currencies other than the US dollar. Among the areas the government hopes to grow is a cryptocurrency, he noted, adding:
“Cryptocurrency will play a significant part in UAE commerce in the future. When it comes to cryptocurrencies and crypto firms, the most essential issue is to establish global governance.”
The UAE continues to build on its crypto regulatory framework, according to Al-Zeyoudi. The emphasis, according to him, would be on transforming the Gulf state into a significant centre with crypto-friendly regulations and enough safeguards. He emphasized that the nation has already seen some progress in this area.
Al-Zeyoudi’s remarks come just one day after the UAE’s minister of state for artificial intelligence, Omar Sultan Al Olama, stated that the country remains committed to its goal of becoming the world’s cryptocurrency hub despite the recent incidents plaguing the cryptocurrency market, such as the unprecedented collapse of FTX.
“Them calling the UAE home is unquestionably a positive idea,” Olama added, referring to cryptocurrency exchanges relocating to Dubai and Abu Dhabi, attracted in part by the virtual asset laws imposed by the UAE last year.
Olama disputed claims that the UAE may become a refuge for cryptocurrency criminals. Additionally, he said that states should collaborate to detect and stop harmful actors.
“They will be found everywhere. You will see them in the Bahamas, New York, and London, and as governments, we need to cooperate with the business to guarantee that if someone commits a crime in one location, he cannot travel to another,” Olama added.
Notably, the UAE Cabinet has enacted new legislation requiring firms engaged in crypto operations to get a licence and permission from the Virtual Asset Regulatory Authority (VARA). Companies that do not comply may be subject to penalties of up to $2.7 million.
In September, the financial regulator of Abu Dhabi’s Global Market free economic zone announced “Guiding Principles” for the regulation and supervision of digital assets. The current legislation adds to these principles.
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