UAE regulators pave way for crypto and blockchain adoption, says legal expert

Share This Post

Legal expert Kokila Alagh shared insights regarding crypto and blockchain regulations in the United Arab Emirates.

While many countries are inclined to simply ban the use of Bitcoin (BTC) and virtual 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, the 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 virtual assets, adding that ADGM is “one of the topmost 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 cryptos 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.  

Read Entire Article

Related Posts

Lost Treasure Found? Bitcoin Miner Transfers Over $3 Million BTC After 14-Year Dormancy

According to the on-chain analysis platform Lookonchian, a long-dormant Bitcoin (BTC) wallet dating back to April 2010, recently transferred 50 BTC, equivalent to $3328 million Related Reading:

Bitcoin’s weekend dip shakes out short-term holders

Bitcoin saw a significant dip over the weekend, with BTC dropping from $70,090 on April 11 to $64,400 on April 13 Despite the initial fears of a broader conflict in the Middle East developing and a

HSBC to Expand Tokenized Asset Offerings — CEO Says He’s ‘Very Comfortable’ With Tokenization

Hong Kong’s leading commercial bank, HSBC, continues to invest in its tokenization product lineup The bank’s CEO, Noel Quinn, stated that he is “very comfortable with the concept of

Trust Wallet Advises Apple Users to Disable Imessage Amid Fears of Zero-Day Exploit

Trust Wallet, a crypto wallet provider, has issued a warning for Apple users to disable Imessage, based on “credible intel” about a zero-day exploit available on the dark web for $2

New UK Legislation To Govern Crypto Staking, Trading, By Mid-2024: What You Need To Know

The United Kingdom is poised to enact new legislation covering stablecoins and various crypto activities, including staking, trading, and custody  The forthcoming regulations, which are expected to

Bitcoin Whales Showing Different Behavior From Past Cycles, But Why?

On-chain data suggests the Bitcoin whales have been showing different behavior regarding exchange inflows from the last cycle Here’s why this may be so Bitcoin Whales Are Showing Different
- Advertisement -spot_img