Cryptocurrencies have only been around for a decade and yet, it is now one of the fastest growing industries. But when it comes to everyday use and long-term investment in crypto, its volatile prices makes most people think twice. Probably this is one reason why cryptocurrencies are seen as the wild west of the financial world, but of late, people have realized that a little more support from regulations could do the trick.
With this in mind, the industry that solely exists online is being applied in real-life regulatory scenarios, especially in the Middle East.
How UAE could tap the crypto sector
The UAE, which has always been keen on taking futuristic steps, is now looking to tap the potential of the virtual asset and blockchain sector.
HH Sheikh Mohammed bin Rashid Al Maktoum envisioned UAE and Dubai as key players in the global crypto sector. On Wednesday, the government approved a new cryptocurrency framework by appointing the Dubai Virtual Assets Regulatory Authority as the supervisor for the sector.
Crypto rules are no longer in a flux
As an Emirate within the UAE, Dubai largely has its own laws and regulations, giving the flexibility it needs to innovate crypto regulations. Recently, the Dubai International Financial Centre introduced its own framework on virtual assets.
UAE continues to emerge as one of the world’s biggest cryptocurrency-friendly jurisdictions, alongside other recent initiatives to support local crypto development. Like in the case of the government-owned Dubai World Trade Centre (DWTC), which plans to collaborate with the private sector to set up an “attractive environment” for the crypto industry. This includes rigorous standards for investor protection, Anti-Money Laundering measures and combating the financing of terrorism.
According to the latest ruling, authorities in Dubai aim to work with all crypto-focused entities “to ensure maximum transparency and security for investors.” In doing so, the new virtual assets law could lead to higher investor confidence and attract more long-term investors in the sector.
Here at BitOasis, we embrace the government’s vision for Dubai and the role companies like BitOasis and the wider virtual asset ecosystem will play in creating a shared and equitable digital future.