IMG-LOGO

UAE Prepares to Launch Nationwide Crypto Licensing System in Line With Global Standards

News Feed - 2022-02-19 03:02:26

UAE Prepares to Launch Nationwide Crypto Licensing System in Line With Global Standards


The United Arab Emirates (UAE) is getting ready to start issuing federal licenses to cryptocurrency service providers in the first quarter. The UAE crypto regulation will take a hybrid approach. The government hopes that a nationwide crypto licensing system will attract big companies to the region. UAE Prepares to Regulate Crypto Sector Nationwide


The United Arab Emirates (UAE) is getting ready to start issuing federal licenses to virtual asset service providers (VASPs) by the end of the first quarter, Bloomberg reported Thursday, citing an unnamed government official.


The UAE’s Securities and Commodities Authority (SCA) is in the final stage of amending legislation to regulate VASPs. The government hopes that a nationwide crypto licensing system will attract big companies to the region.


The country completed a risk assessment of crypto assets late last year. The assessment involved 14 public-sector agencies and 16 private-sector entities. The government concluded that proper regulation, rather than an outright ban, can mitigate the risks of cryptocurrencies being used in illicit finance schemes.


The UAE official told the news outlet that the country’s crypto regulation takes into account the latest guidance from the Financial Action Task Force (FATF) as well as regulatory strategies used in the U.S., U.K., and Singapore.


The regulation will take a hybrid approach. The SCA will regulate the crypto industry with input from the central bank. Local financial centers can establish their own daily procedures around licensing. The UAE official said the government also wants to regulate the crypto mining industry.


Some of the financial free zones in the UAE have already issued licenses for VASPs. In December, Binance signed an agreement with Dubai World Trade Centre Authority to establish a global crypto hub. Tags in this story Binance, crypto UAE, cryptocurrency exchanges, cryptocurrency licensing, Exchanges, licensing regime, UAE, uae crypto, uae cryptocurrency, UAE licensing, UAE licensing cryptocurrency


What do you think about the UAE establishing a licensing regime for the crypto industry? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. FBI Launches "Virtual Asset Exploitation Unit" With Specialized Team of Crypto Experts REGULATION | 4 hours ago Keep Your Coins Act: US Lawmaker Introduces Bill to Protect Privacy in Cryptocurrency Transactions REGULATION | 7 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleFBI Launches ‘Virtual Asset Exploitation Unit’ With Specialized Team of Crypto Experts Next articleCardano to Reach $58 by 2030 According to Finder’s Poll Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItPUBG Developer Parent Company Krafton to Work On NFT and Metaverse Related Projects


Krafton, the parent company of Bluehole, developers of PUBG, a popular battle royale game that has earned more than $300 million in 2021, announced it will redirect some of its activities toward developing NFT and metaverse-related projects. The company says ... read more.Binance Invests $200 Million Into the Business Magazine and Digital Publisher Forbes Global Regulators "Going Full Steam" on Crypto — Official Says "Current Structure Is No Longer Fit for the Purpose" JPMorgan Predicts Long-Term Bitcoin Price of $150K — Outlines Challenges Ahead US Inflation Jumps to 7.5%, CPI Climbs at Fastest Rate in 40 Years, Citizens See Little Wage Growth