United Arab Emirates (UAE) is getting ready to start giving cryptocurrency service providers government licenses in the first quarter of this year. The United Arab Emirates will regulate crypto in a mixed way. The government wants big businesses to move to the area if they can get a crypto license from all over the country.
UAE Prepares to Regulate Crypto Sector Nationwide
It looks like the United Arab Emirates (UAE) is going to start giving federal licenses to virtual asset service providers (VASPs) by the end of the first quarter. Bloomberg reported on Thursday that a government official told the news outlet.
Finally, the United Arab Emirates’ Securities and Commodities Authority (SCA) is ready to change the law on VASPs. The government wants big businesses to move to the area if they can get a crypto license from all over the country.
People in the country did a risk assessment of crypto assets at the end of last year. The study looked at 14 public-sector organizations and 16 private-sector businesses. This is what the government decided: proper regulation, not a ban, can cut down on the risk of cryptocurrencies being used for illegal money schemes.
Official: The UAE official said that the country’s crypto regulations take into account the most recent guidance from the Financial Action Task Force (FATF) and the regulatory strategies used in the United States, the United Kingdom, and Singapore. This is what the UAE official said.
The regulation will be a mix of different things. The SCA will work with the central bank to make sure the crypto industry is safe. When it comes to licensing, local financial centers can set up their own day-to-day procedures. The official from the UAE said that the government also wants to regulate the crypto mining business.
People who work in VASP jobs have already been given licenses by some of the free zones in the UAE. In December, Binance signed a deal with the Dubai World Trade Center Authority to set up a global crypto hub.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.