[ad_1]
On the one hand, Gulf state regulators have been among the most eager to work with and attract crypto entrepreneurs, with a vision of integrating the technology into mainstream financial markets.
On the other hand, the Middle East – characterized by highly centralized authoritarian regimes, rapidly inflated currencies, and sanctioned entities – is ripe for initial use of cryptocurrencies: escaping government control over currencies.
Cryptocurrency trading volumes in the Middle East are said to be growing faster than any other region of the world a report It was published last month by analytics firm Chainalysis. This is thanks to these two uses.
“Bitcoin adoption in the Middle East is at an all-time high, but it’s been very quiet because of the government’s harsh policies on bitcoiners,” said Fadi Elsalameen, a Palestinian anticorruption activist and fellow at the U.S. Security Project, a Washington independent that believes Tank. “It’s already here, it’s being used, and it’s overwhelming,” said Elsalameen, who started using bitcoin after the Palestinian Authority closed his bank account over his criticism of its leader, Mahmoud Abbas.
Unauthorized use of the technology is widespread in many other places in the region.
Turkey, has worst inflation On Earth, Crypto Payments Banned Last year, but according to the Chainalysis report, it is still the largest cryptocurrency market in the region.In Lebanon, where inflation is also high and the banking system is torn, it is technically illegal to accept crypto payments, but Bitcoin and the U.S. dollar-backed stablecoin Tether have become popular alternative to a legitimate monetary system.
Alex Gladstein, chief strategy officer at the Human Rights Foundation, said that in Saudi Arabia, some women secretly use bitcoin as an alternative to bank accounts that are overseen by male relatives.
Still, there are signs that the Saudi government is warming to blockchain technology after initially shying away from it. Meanwhile, its neighbors Abu Dhabi, Dubai and Bahrain have gone to great lengths in recent years to work with crypto companies and create regulatory frameworks that cater to the technology.
“These authoritarian regimes in the Gulf have every reason to support cryptocurrency as long as they can control it,” Gladstein said.
This approach has been largely welcomed by cryptocurrency executives. Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, is based in Dubai and was here on Wednesday and Thursday to speak at Abu Dhabi Financial Week and the Milken Institute’s Middle East and North Africa summit. Zhao, whose exchange is reportedly under investigation in the U.S. for possible money laundering violations, mocked crypto skeptic economist Nouriel Roubini’s suggestion that UAE authorities should deport him. In fact, while he was here, his exchange received a new license from the Abu Dhabi Financial Regulatory Authority.
Coinbase Senior Advisor John D’Agostino at panel Industry executives at the Milken Summit on Friday morning. “At the risk of flattering our hosts here, the UAE is an exception because you have a very trustworthy, respected government that is very progressive in terms of installing blockchain solutions at the government level.”
The tone is a far cry from industry conferences in the U.S., where crypto executives have routinely complained that federal regulators have been poor at adapting to the technology.Crypto companies have Sue U.S. Regulators Attempts to pry access to financial systems, and in one case Bitcoin Friendly Bankseven arguing in court that the entire Fed system is unconstitutional.
Basil Al Askari, founder of Abu Dhabi-based cryptocurrency investment platform MidChains, said he regularly sparred with other cryptocurrency tycoons over his partnerships with the state. Midchains is backed by UAE sovereign wealth fund Mubadala and is working closely with Abu Dhabi Global Market Financial Services Regulatory Authority to obtain approvals before selling its products.
He said many cryptocurrency founders who had rushed into legal gray areas before asking questions thought he was being too cautious. “Our view is regulation first, and then work towards mass adoption through institutions in a compliant manner,” he said.
Joseph Dallago, founder of crypto brokerage Rain, takes a similar view. Since 2017, he has worked closely with Bahraini regulators on the company’s development. He said the collaborative approach slowed him down at times, but it was worth the wait to avoid compliance and reputation headaches.
The original anti-government ethos of cryptocurrencies has become “secondary” to the technology’s potential to automate the movement of money, he said.
“At the end of the day,” he said. “It’s about creating a cutting-edge financial system.”
[ad_2]
Source link