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Cryptocurrencies will play a “major role in the future of trade in the UAE,” UAE minister says

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Source: Adobe/Cherkas

According to the United Arab Emirates Minister of State for Foreign Trade, the United Arab Emirates plans to use cryptocurrencies for trade in the future and establish an effective regulatory framework.

During an interview with Bloomberg on January 20 in Davos, Switzerland, where the World Economic Forum annual meeting is held, Thani Al-Zeyoudi Say The UAE is considering trading in currencies other than the U.S. dollar. One area the country is looking to expand is cryptocurrencies, he said, adding:

“Cryptocurrencies will play an important role in future UAE trade. Above all, we want to ensure global governance when it comes to cryptocurrencies and crypto companies.”

Al-Zeyoudi added that the UAE remains committed to its cryptocurrency regulatory regime. The focus, he said, will be on making the Gulf country a major hub with crypto-friendly policies and adequate safeguards. He noted that the country had already made some progress in this area.

“We started attracting some companies to the country with the aim of building together the right governance and legal system that is needed.”

Al-Zeyoudi’s comments come a day after Omar Sultan Al Olama, UAE Minister of State for Artificial Intelligence, Say The country remains committed to its goal of becoming the world’s cryptocurrency hub, regardless of recent events that have plagued the crypto market, including unprecedented FTX Crash.

“It’s definitely a positive thing that they call the UAE home,” Al-Olama said, suggesting that cryptocurrency exchanges moved to Dubai and Abu Dhabi in part because virtual asset regulations issued by the UAE last year attracted them.

Al-Olama dismissed allegations that the UAE could be a safe haven for cryptocurrency criminals. He also noted that governments should work together to identify and deter bad actors.

“You’re going to see them everywhere. You’re going to see them in the Bahamas, you’re going to see them in New York, you’re going to see them in London, what we need to do as a government is work with industry to make sure that if someone does something wrong, he can’t Moving from one place to another,” Orama said.

It is worth noting that the UAE Cabinet recently introduce The new regulations require entities engaging in crypto activities to be licensed and approved by the Virtual Assets Regulatory Authority (VARA). Companies that don’t comply could face fines of up to $2.7 million.

The latest regulations complement the “Guiding Principles” for digital asset regulation issued by Abu Dhabi Global Market Free Economic Zone’s financial regulator in September.

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