Cryptocurrencies will play an “important role” in the UAE’s global trade in the future, according to UAE Minister of State for Foreign Trade Thani Al-Zeyoudi.
Speaking to Bloomberg on January 20 in Davos, Switzerland—where world leaders are currently meeting for the 2023 World Economic Forum—Al-Zeyoudi provided a series of updates on the UAE’s trade partnerships and policies going into 2023. .
Regarding the cryptocurrency sector, the minister stated that “cryptocurrencies will play an important role in the UAE’s trade in the future,” stressing that “the most important thing is that we ensure global governance when it comes to cryptocurrency.” cryptocurrencies and crypto companies.
Al-Zeyoudi went on to suggest that, As the UAE works on its crypto regulatory regime, the focus will be on making the Gulf country a hub for crypto-friendly policies that also have sufficient protections:
“We started bringing some of the companies into the country with the goal that we build together the right government and legal system that is needed.”
Al-Zeyoudi’s comments come just a week after the UAE Council of Ministers introduced a new regulation that essentially ensures that entities engaged in cryptocurrency must obtain a license and approval from the Regulatory Authority. of Virtual Assets (VARA).
If the companies fail to do so, they will face fines of up to $2.7 million under the new law. The move is in addition to the “Guiding Principles” for the regulation and supervision of digital assets published in September by the financial regulator of the Abu Dhabi Global Market free economic zone.
The principles outline a favorable position towards cryptocurrencies, while committing to comply with international standards regarding the fight against money laundering, the financing of terrorism and financial sanctions.
Omar Sultan Al Olama, the UAE’s Minister of State for Artificial Intelligence and the Digital Economy, also participated in the World Economic Forum as part of a panel focused on cryptocurrencies on Jan. 19.
Al Olama noted that while the FTX debacle was a big concern, the UAE still wants to be a center despite all the ordeal.
“That [las empresas de criptomonedas] call the UAE home is definitely a positive thing,” he said.
The minister also distanced the UAE from claims that its cities, such as Dubai, tend to become hotspots for disgraced crypto figures, arguing that “bad actors have no nationality or destiny.”
However, he insisted that governments have to work together to prevent bad actors from fleeing abroad.
“We’ll see them everywhere. We’ll see them in the Bahamas, in New York, in London, and what we have to do as governments is work together, also with industry, to make sure that if someone does something wrong, they can’t get away with it. site to site”said.
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