The UAE, through its Minister of State for External Trade, Thani bin Ahmed Al Zeyoudi, has indicated that it intends to use cryptocurrencies for its future business activities and is working on establishing a legal framework that will enable the development of this new sector.
“An Important Role”
During an interview with our colleagues from Bloomberg, this January 20 in Davos, Switzerland, where the World Economic Forum was held, as every year, the Minister of Foreign Trade of the United Arab Emirates, Thani Al Zeydouni stated that the his country was increasingly considering alternative options to paying in US dollars. Therefore, one of the possibilities being considered by the financial authorities of this Gulf state would be cryptocurrencies. According to Al Zeydouni:
Cryptocurrencies will play an important role in the future of UAE trade. The bottom line is that we provide overall governance of crypto assets and companies involved in the cryptocurrency world.
And to continue by saying that the UAE continues to work on the legal regime that will be put in place to protect consumers while allowing for innovation to develop. According to him, efforts will be concentrated so that this Gulf country becomes a global point of reference whose policies will facilitate the establishment of foreign companies. The minister also noted that significant progress has been made in this area:
We are starting to attract some companies in the sector with the aim of building together the legal and governance systems we need.
A shared vision
These statements by Thani Al Zeydouni were made just one day after Omar Sultan Al Olama, the Minister of State in charge of Artificial Intelligence, to ensure that the UAE becomes the preferred destination of crypto investors and entrepreneurs. And this, despite the recent turbulence that has hit the market, including the collapse of the FTX exchange platform.
“The fact that they call us their home is really a positive point,” Al Olama added, in a thinly veiled nod to those cryptocurrency exchanges that have set up shop in Dubai or elsewhere. year on the regulation of digital resources.
However, Minister Al Olama has rejected allegations that his country could become a haven for criminals who use cryptocurrencies to launder their money. He also called on governments to work together to identify and stop actors who do not play by the rules of the game.
They are everywhere. In the Bahamas, in New York, in London, and what we need to do as governments is work together, and with industry players, to ensure that an individual who commits a crime cannot flee from one country to another.
It is worth mentioning that the UAE Cabinet recently passed a new law requiring entities dealing with the crypto ecosystem to obtain a license and authorization from the Crypto Assets Regulatory Authority (ARCA). Companies that fail to comply with these requirements run the risk of having to pay a fine of up to $2.7 million.
This latest law adds to the “General Principles” for the regulation and supervision of cryptocurrencies, published in September 2022 by the financial regulator of the Abu Dhabi Global Market Free Zone.