A conference was held at the Museum of the Future in Dubai on January 26 in which panelists from the United Arab Emirates talked about digital asset regulations.
2020 has been a bittersweet year for cryptocurrencies as well as crypto enthusiasts. There have been several nail-biting events in the crypto space, including the collapse of the ecosystem, the downfall of exchanges, the price drop of crypto assets, some black swan events rattled the industry and many more. Many exchanges went bankrupt. Because of all these sad incidents, crypto regulators around the world are seeking to tighten the screws on crypto rules and regulations.
Panelists at the AB UAE conference said that the United Arab Emirates has been proactive in establishing itself as a crypto hub. The conference took place last week on Thursday, where Anas Bhurtun, Web3 founder and Arts DAO co-founder C.E.O, said, “What I like about what they (the UAE Government) have done here is that they have allowed the germination of crypto to happen.”
Speaking on similar sentiments, Suzana Obradovic, Regional Director at Chainalysis, said the UAE government has been at the forefront of providing practical innovation. They have been very vocal about their support for the industry, from regulating it in general, thus making it accessible to all.
According to Miss Obradovic, the directorate of UAE is completely involved with virtual currency companies at various different levels to ensure that everything is being done in a secure manner. So, it is likely the finest region in the entire world, especially if you are willing to be ahead of the curve.
Reportedly, the Senate of the United Arab Emirates announced a new regulation and an independent regulatory authority for cryptocurrencies and cryptocurrency service providers. Dubai Virtual Asset Regulation Law and the Dubai Virtual Assets Regulatory Authority (VARA) will oversee the rise of the digital asset business environment, including governance, regulation, and licensing.
When the conference came up with why the country needed regulations for the crypto market, Emmanuel Alamu, global head of OTC, pointed to the FTX decline as an eye-opener for the crypto market. He said, “It showed us how much we need regulations, and I think it is good that we need these regulations as it will help people place their trust in the crypto market.”
According to Mr. Alamu, the crypto market is flexible, and they are trying their best to iron out the appropriate way to do things. He said crypto is a young market and will be the last hit regarding economic challenges.
Recently in an interview with Bloomberg, Thani bin Ahmed Al Zeyoudi, UAE’s Foreign Trade Minister, talked about the role of cryptocurrencies in the businesses inside the country. According to him, crypto will play a significant role in UAE trade in the future.