The United Arab Emirates joins the bandwagon as they endorse for a pleasant cryptocurrency and blockchain sector. The UAE plans to allow for the issuance of federal licenses to cryptocurrency businesses in the first quarter of 2022.
With this bill they aim to attract foreign investment to start activity in this sector.
According to a Bloomberg report, the crypto regulatory framework that the UAE is finalizing will apply to all virtual asset service providers operating in the region. This sector will be regulated by the UAE’s Securities and Commodities Authority (SCA). This regulatory body is currently close to amending legislation that will regulate virtual currency service providers.
Taking a hybrid approach to the Crypto regulations
The hybrid approach allows for dynamism as they will not leave crypto regulations in the hands of one organization, instead, they will involve key stakeholders in the sector to contribute to setting up the legal framework. The SCA will work with the central bank for a broad regulatory oversight. Moreover, the local financial bodies will also implement their own daily procedures.
Photo by Saj Shafique
