The United Arab Emirates, through its Minister of State for Foreign Trade, Mr. Thani bin Ahmed Al Zeyoudi, has announced that it intends to use crypto assets for its future trading activities and is working to create a legal framework that will allow the development of this new sector.
“A big role”
During an interview with our colleagues from Bloomberg, on January 20 in Davos, Switzerland, where the World Economic Forum was held, as every year, the Minister of Foreign Trade of the United Arab Emirates, Mr. Al Zeydouni said. stated that his country was increasingly considering alternative payment options in US dollars. Thus, one of the possibilities considered by the financial authorities of this Gulf state would be crypto assets. According to Al Zeydouni:
Crypto will play a major role in the future of UAE commerce. The bottom line is that we provide overall governance of crypto assets and businesses involved in the crypto world.
And to go on to say that the UAE continues to work on the legal regime that will be put in place to protect consumers while allowing innovation to flourish. According to him, efforts will be focused so that this Gulf country becomes a world reference country, whose tax policies will facilitate the creation of foreign companies. The minister also noted that significant progress has been made in this area:
We have begun to attract certain companies from the sector with the aim of building together the legal and governance systems we need.
A shared vision
These statements by Mr. Thani Al Zeydouni came just a day after Omar Sultan Al Olama, the Minister of State in charge of Artificial Intelligence, to ensure that the UAE becomes the destination of choice for crypto investors and entrepreneurs. And this, despite the recent upheavals that have affected the market, including the collapse of the FTX exchange platform.
“The fact that they call us their home is really a plus point,” added Al Olama, in a nod to those crypto asset exchanges setting up shop in Dubai or elsewhere. Abu Dhabi, due to the withdrawal of a law last year on the regulation of digital assets.
However, Minister Al Olama brushed aside accusations that his country could become a haven for criminals who use cryptocurrencies to launder their dirty money. He further called for governments to work together to identify and stop the activities of actors who do not play by the rules of the game.
They are everywhere. In the Bahamas, in New York, in London and what we have to do as a government is to work together and with industry players to ensure that an individual who commits an offense cannot escape from one country to another.
It is worth noting that the UAE cabinet recently approved a new law that requires entities dealing with the crypto ecosystem to obtain a license and authorization from the Regulatory Crypto Assets Authority (ARCA). Companies that do not meet these requirements risk paying a fine of up to $2.7 million.
This latest law is in addition to the General Principles for the Regulation and Supervision of Crypto Assets, published in September 2022 by the financial regulator of the Abu Dhabi Global Market Free Zone.