The entire globe witnessed the inclination of the Middle East towards cryptocurrency throughout 2022. Now the trend is seemingly persisting through 2023 as well. Recently, UAE’s Minister of State for Foreign Trade, Thani bin Ahmed Al-Zeyoudi hinted at the inclusion of cryptocurrency in the nation’s trade partnerships and policies in 2023.
Appearing at the 2023 World Economic Forum in Davos Switzerland, Al-Zeyoudi stressed the importance of global governance in relation to cryptocurrencies and firms.
The foreign trade minister further claims that when the UAE creates its regulatory framework for cryptocurrencies, the focus would be on making the Gulf nation crypto-friendly with standard security. Al-Zeyoudi further said,
“We started attracting some of the companies to the country with the aim that we’ll build together the right governance and legal system, which are needed. “
As mentioned earlier, the minister hopes to retain a balance between innovation and protecting investors. Last week, the UAE Cabinet put forth revised regulations concerning cryptocurrency. According to this, firms that carry out cryptocurrency activity will be required to obtain a license and affirmation from the Virtual Asset Regulatory Authority [VARA].
Additionally, Binance has managed to acquire this license. OKX received a provisional license under VARA. FTX was also part of the list, however, the exchange’s approval was revoked shortly after its collapse. With the latest regulations, those who fail to seek permission will face fines of $2.7 million or AED 10 million.
Is UAE harboring cryptocurrency criminals?
Throughout last year, the cryptocurrency industry noted the failure of multiple projects. While some of the men behind these entities are still on the run, rumors about them settling in Dubai have emerged. This led to the community believing that the region might be too lenient with its regulations.
Furthermore dismissing the same, UAE’s minister of state for artificial intelligence and the digital economy, Omar Sultan Al Olama said,
“Bad actors don’t have a nationality and don’t have a destination. You will see them everywhere. You will see them in the Bahamas, you will see them in New York, London, and what we need to do as governments is to work together, with the industry as well, to ensure that if someone does something wrong he can’t move from one place to the other.”
That being said, the minister is glad that cryptocurrency firms are “calling the UAE home.”