While many countries are inclined to simply ban the use of Bitcoin (BTC) and digital assets, regulators in the United Arab Emirates are taking a different approach.
The country has been consistently enacting its vision of becoming a blockchain capital by providing frameworks to guide crypto businesses on how to operate in accordance with the laws.
Jurisdictions in the country are divided between the mainland, where the regulator is the Securities and Commodities Authority (SCA), and free zones — i.e., geographically specified areas within the UAE with relaxed taxation and regulatory regimes.
Such free zones include the Dubai International Financial Centre (DIFC), which is regulated by the Dubai Financial Services Authority (DFSA), Abu Dhabi Global Markets (ADGM), which is regulated by the Financial Services Regulatory Authority (FSRA), and the Dubai Multi Commodities Centre (DMCC), which falls under regulatory remit of the SCA.
In an interview with Cointelegraph, Kokila Alagh, founder and CEO of Karm Legal Consultants, shared a brief overview of the regulatory situation in the country. According to Alagh, the SCA, the mainland regulator, provides certainty and opportunities for crypto and blockchain businesses:
“The regulations provided certainty and have opened new opportunities in the UAE, which makes SCA a progressive regulator in the global landscape, as they haven’t ignored this vital growing sector and are continuously working on developing the frameworks to adjust as per these emerging sectors like DLT, blockchain.”
The FSRA, ADGM’s financial services regulator, was the first to introduce digital asset regulations in the country back in 2018. Alagh said that ADGM was also one of the first regulators globally to introduce digital securities regulations and guidance on digital assets, adding that ADGM is “one of the top-most jurisdictions for established blockchain companies.”
Alagh also discussed regulations in the DIFC. According to Alagh, the DFSA, DIFC’s regulator, “is one of the first regulators from a major financial free zone to bring regulations in regard to security tokens.”
Current DFSA regulations cover the tokenization of securities through blockchain and distributed ledger technology, including the tokenization of shares, derivatives, bonds, debentures, certificates or units of a fund. However, consultation papers for stablecoins, fungible cryptocurrencies and nonfungible tokens are still in the process of being drafted.
Related: Dubai World Trade Centre to create new crypto hub and become regulator
Lastly, Alagh noted DMCC. The free zone issued special licenses, such as the DLT technology service provider license and proprietary trading in crypto commodities license. It also has a crypto-dedicated center called Crypto Oasis, where more than 130 blockchain companies have registered.
Alagh said that “the DMCC is one of the most advanced regulators in this space and has spearheaded the development of the crypto ecosystem in the UAE. The DMCC is a crypto-friendly regulator and provides companies with a friendly framework for setting up a business.”
Meanwhile, crypto exchange Binance has set out to collaborate with the UAE government to assist crypto exchanges and businesses to get their licenses in Dubai. The firm signed a memorandum of understanding with the Dubai World Trade Centre Authority as they launched a crypto hub.
Note: This article have been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here
2024 WiFi Extender Signal Booster, Internet Wireless Repeater for Home Coverage up to 9277Sq. ft and 40 Devices,WiFi Extenders Signal Booster for Home,Repeater with Ethernet Port & Access Point.
$23.99 (as of June 25, 2024 21:05 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
KitchenAid Ribbed Soft Silicone Pot Holder 2-Pack Set, Fog Blue, 7"x9"
$8.55 (as of June 25, 2024 21:04 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
SOLIPECT 9PC Bitcoin Coin | Physical Bitcoin with Protective Case, Gold Plated Bitcoin for Commemoration, Gifts for Men (Gold)
$9.99 (as of June 25, 2024 21:05 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Nintendo Switch™ with Neon Blue and Neon Red Joy‑Con™
$201.99 (as of June 24, 2024 21:06 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
