UAE Prepares to Launch Nationwide Crypto Licensing System Compliant with Global Standards – Regulation Bitcoin News

0

The United Arab Emirates (UAE) is preparing to start issuing federal licenses to cryptocurrency service providers in the first quarter. UAE crypto regulation will take a hybrid approach. The government hopes that a nationwide crypto licensing system will attract big companies to the region.

UAE Prepares to Regulate Crypto Sector Nationwide

The United Arab Emirates (UAE) is preparing to begin issuing federal licenses to virtual asset service providers (VASPs) by the end of the first quarter, Bloomberg reported Thursday, citing an unnamed government official.

The UAE Securities and Commodities Authority (SCA) is in the final stages of amending legislation to regulate VASPs. The government hopes that a nationwide crypto licensing system will attract big companies to the region.

The country completed a risk assessment of crypto assets late last year. The assessment involved 14 public sector agencies and 16 private sector entities. The government has concluded that proper regulation, rather than outright prohibition, can mitigate the risks of cryptocurrencies being used in illicit finance schemes.

The UAE official told the outlet that the country’s crypto regulations take into account the latest Financial Action Task Force (FATF) guidelines as well as regulatory strategies used in the US, UK and Singapore.

The regulation will take a hybrid approach. The SCA will regulate the crypto industry with input from the central bank. Local financial centers may establish their own day-to-day licensing procedures. The UAE official said the government also wants to regulate the crypto mining industry.

Some of the financial free zones in the UAE have already issued licenses for VASPs. In December, Binance signed an agreement with the Dubai World Trade Center Authority to establish a global crypto hub.

Keywords in this story

Binance, crypto UAE, cryptocurrency exchanges, cryptocurrency license, Exchanges, licensing scheme, UAE, crypto water, cryptocurrency water, UAE license, UAE cryptocurrency license

What do you think of the UAE setting up a licensing regime for the crypto industry? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

Image credits: Shutterstock, Pixabay, Wiki Commons

Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Share.

Comments are closed.