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An Emirati official spoke on the state of the economy at the World Economic Forum in Davos on Thursday cryptocurrency Given the recent market crash.
Omar Sultan Al Olama, United Arab Emirates Minister of Artificial Intelligence, Digital Economy and Remote Work Applications, took part in a panel discussion titled “Finding the Right Balance for Cryptocurrencies” at the annual forum.
The value of many cryptocurrencies plummeted and Crypto exchange FTX goes bankrupt Last year was the focus of the discussion. Host Stacy-Marie Ishmael, who covers cryptocurrencies for Bloomberg, mentioned FTX founder Sam Bankman-Fried’s visit to the UAE last year.
Bankman-Fried visited Dubai in October — just weeks before the Bahamas-based company collapsed — to secure funding. Al-Olama played down the American’s connection to Dubai, saying he had only been there once.
“Being a city that loves the future, whether it’s 3D printing, or artificial intelligence… makes people think that the future is there,” Olama said of Dubai’s appeal. “Bad actors have no nationality and no destination.”
Orama noted that the collapse of other cryptocurrency entities, such as Singapore-based Three Arrows Capital, had no connection to the UAE.
“Bad actors want to make sure they are part of a jurisdiction where people feel protected; they hear Singapore, London, Dubai,” he said. “You’ll see them everywhere.”
Olama called on governments to ensure that those accused of financial misconduct cannot travel, saying they needed to “work with industry to ensure that if someone does something wrong, he cannot move from one place to another.”
The UAE has implemented several measures over the past year to combat financial wrongdoing.Recently, the Central Bank of the UAE announced a crackdown on money laundering Financial institutions in the Gulf countries.
When Ishmael mentioned a third report UAE has cryptocurrency, Olama said, “This is the first time I’ve heard these statistics.” The minister did admit to reading a report that said 4 percent of FTX’s clients were in the UAE. Olama said it was also important to “assess the value of FTX’s impact,” rather than simply paying attention to where customers are located. He suggested that some FTX clients in the UAE may not have invested much in the company or have dormant accounts.
Many cryptocurrency exchanges have announced Moving to Dubai and Abu Dhabipartly because of the attraction of virtual asset regulations issued by the UAE last year.
There is also a relatively high degree Cryptocurrency-Related Innovations Happening in the UAE. In October, the Dubai-based cryptocurrency platform bit oasis Announcing the launch of a crypto-backed payment card.
Claiming that despite recent events, the UAE still wants to be a hub for cryptocurrencies, Olama said: “It’s definitely a positive thing that they call the UAE home.”
Finally, Olama discussed the future of decentralized finance (DeFi) on the panel. DeFi is a form of financial technology in which individuals can rely on technologies such as digital financial databases to conduct financial transactions such as loans without intermediaries such as banks. DeFi uses blockchain technology similar to cryptocurrencies.
Olama called DeFi the “least regulated” industry in the crypto world. He added that DeFi could become a “bubble,” meaning it would collapse after seeing rapid growth in value.
“We will see some bubbles in the DeFi space in the future, which will require a lot of government intervention,” he said.
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