Cryptocurrencies will “play a major role” in advancing global trade in the United Arab Emirates, said UAE Minister of State for Foreign Trade Thani Al Zeyudi.
Speaking to Bloomberg on January 20 in Davos, Switzerland, where world leaders are gathering for the 2023 World Economic Forum, Al Zeyudi provided many updates on UAE trade partnerships and policies for 2023. provided.
Commenting on the crypto sector, the minister said, “Cryptocurrencies will play a major role in UAE trade going forward,” adding, “The most important thing is to ensure global governance when it comes to cryptocurrencies and crypto companies.” outlined.
Al-Zeyoudi suggested that as the UAE grapples with its crypto regulatory regime, the focus will be on making the Gulf countries a hub with crypto-friendly policies with adequate protections. .
“We have started to attract some companies to the country with the aim of building together the proper governance and legal system that is needed.”
Al-Zeyoudi’s comments come just one year after the UAE Cabinet introduced new regulations that essentially guarantee entities engaging in cryptocurrency activities that must secure licenses and approvals from the Virtual Asset Regulatory Authority (VARA). A week later.
Failure to do so could result in companies facing fines of up to $2.7 million under the new law. The move adds to the Guiding Principles for the Regulation and Supervision of Digital Assets issued by the financial regulators of the Global Markets Free Economy Area in Abu Dhabi in September.
The Principles outline a friendly stance on cryptocurrencies while committing to comply with international anti-money laundering (AML) standards, combat the financing of terrorism (CFT) and support financial sanctions. .
Omar Sultan Al-Ollama, UAE Minister for Artificial Intelligence and the Digital Economy, also appeared at the World Economic Forum on January 19 as part of a panel focused on cryptocurrencies.
Al Olama pointed out that while the FTX debacle is a major concern, the UAE still wants to be a hub despite the whole ordeal.
“they [crypto companies] Calling the United Arab Emirates home is definitely a positive thing,” he said.
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The minister also distanced the UAE from allegations that cities like Dubai tend to be key escape destinations for disgraceful cryptocurrency figures, arguing that “the bad guys have no nationality and no destination.” .
But he stressed that governments need to work together to stop bad actors from rampaging abroad.
“You will see them everywhere. You will see them in the Bahamas, New York, London. It’s to keep him stuck if you do something wrong… from one place to another,” he said.