Several countries across the world have been working on crypto related regulations. Recently, it was affirmed that Hong Kong will open its doors to retail trading next month. Japan, on the other hand, is set to tighten its AML measures from June 1. Norway’s central bank, on its part, asked authorities to proceed more quickly with crypto rules, rather than waiting for international regulatory solutions.
In what is the latest development, Dubai’s financial regulator has urged global watchdogs to step up talks with each other. According to an official, this will help in avoiding “bad actors” exploit gaps in crypto rules.
Since November last year, the Dubai Financial Services Authority’s [DFSA] crypto token regime has been in force. The regime is quite comprehensive. It covers AML/CFT risks in respect of trading, clearing, holding and transferring crypto tokens. Alongside, it also addresses risks related to consumer protection, market integrity, custody and financial resources for service providers.
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Talks are essential to bridge regulatory gaps: Official
Elisabeth Wallace, the Associate Director at the Dubai Financial Services Authority, revealed that the agency plans to update the aforementioned crypto token rules. That can be expected to roll out later this year. In a virtual conference today, Wallace said,
“A lot of crypto businesses tend to operate a significant number of activities within one umbrella and that really concerns us.”
She added,
“They are across the whole world and as regulators we need to talk to each other a lot more in this area because there can be quite a few gaps and we have seen a lot of bad actors trying to plug some of those gaps.”
Dubai’s financial regulator warned that global watchdogs need to step up talks with each other to avoid “bad actors” exploiting gaps in crypto rules https://t.co/Mri2Olt5ZI
— Bloomberg Crypto (@crypto) May 26, 2023
Dubai has been making rapid strides on the crypto front. Recently, a developer made an innovative decision to construct a new hotel chain modeled after the iconic Bitcoin symbol. This unique venture will manifest as a 40-story high-rise, representing a real-life Bitcoin tower in Dubai.
Parallelly, companies are also eying this region to set-up shop. Crypto.com recently attained an “MVP Preparatory License” from Dubai’s Virtual Assets Regulatory Authority. Bybit, on the other hand, opened its global headquarters in this region last month. In fact, Blockchain company Ripple is also set to expand to Dubai, for the region is “emerging as a key global financial hub for crypto innovation to thrive.”
Also Read: Dubai: Crypto.com Obtains Preparatory License From VARA