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James Carter

January 21, 2023

UAE Takes Steps to Promote Cryptocurrency Adoption

Thani Al-Zeyoudi, the UAE’s minister of international trade, said that the country has learned a lot from the cryptocurrency industry and must now put the proper rules to keep growing.

Thani Al-Zeyoudi says that cryptocurrency will soon be a big part of the country’s trade with other countries. Al-Zeyoudi also noted that as the UAE changes how it regulates cryptocurrencies, the focus will be on making the Gulf country a hub with crypto-friendly rules and enough security.

The First Rules and Regulations

The UAE wants to grow into a place where cryptocurrency is welcome. Its regulations for cryptocurrencies are flexible, attracting many cryptocurrency companies. There are already cryptocurrency exchanges in the country, like Binance, Kraken, and Crypto.com.

The UAE Cabinet said last week that there would be a label rule and an independent regulatory body for virtual assets and service providers for virtual assets. This is the first time the state has tried to regulate industry at the federal level.

Companies that don’t follow the new rule could get fines of up to $2.7 million. In September, the financial regulator of Abu Dhabi’s Global Market free economic zone released the “Guiding Principles” for regulating and keeping an eye on digital assets. This action goes further with those ideas.

And the FTX collapse was one of the worst things to happen. Reports say that 4% of FTX’s clients are based in the UAE. The collapse of FTX hurt cryptocurrency customers all over the world, including those in the UAE.

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