For a long time, the UAE was one of the most advanced cryptocurrency countries in the world. For example, state-owned licensing company Kiklabb allows customers to pay visa and trade license fees using various digital assets for the DFSA, which has announced a decision to develop a comprehensive framework to regulate cryptocurrencies as part of its 2021 business plan.
As a result of Dubai’s cryptocurrency-friendly policies, Ripple, which had recently been in turmoil with the US Securities and Exchange Commission, announced its decision to open an office in the region. Additionally, it is reported that the UAE and Saudi Arabia are working on a joint digital currency research initiative for the central bank called Project Aber.
Commenting on why the UAE is rapidly becoming a target for any crypto / blockchain startup, Mazdak Ravati, Managing Partner of Ludwar International Consulting FZC, told Cointelegraph:
“If you ask someone in the tech sector and startups anywhere in the world about the speed of government regulation, you will get the same answer: It could definitely be faster. “Nevertheless, the UAE has always been a pioneer in adopting new technologies and creating a regulatory framework for their development.”
He also argued that blockchain as a revolutionary new technology was recognized very early on by regulators in the United Arab Emirates, and as a result many government organizations were tasked with not only promoting development, but actually taking advantage of an integrated e-government strategy.
Finally, Ravati added that although blockchain adoption has been rapid, cryptocurrencies take longer to understand, use, and regulate. Even when it comes to adopting cryptocurrencies, Abu Dhabi was one of the first regions to introduce a well-thought-out structure for exchanges and various types of tokens in 2018.
The United Arab Emirates already has a base
While many countries are still trying to formulate comprehensive strategies to simplify the adoption of cryptocurrencies – and some want to ban the use of carpets – the UAE appears to be laying the foundation for a digital ecosystem.
Mohamed Abbas, project manager at TDeFi Accelerator, the company that hosted the Dubai DeFi global conference, told Cointelegraph that several projects such as the decentralized ride-sharing platform Drife and the fictional blockchain-based DeFi Eleven sports ecosystem have managed to attract interest from the private sector. Offices. The royal families of the United Arab Emirates as well as other big players such as San Francisco venture capitalists like Draper Walled Garden added:
In an effort to set the pace and become a leader in blockchain technology, the UAE launched the Blockchain Strategy 2021, according to which 50% of public transactions will be completed using blockchain technology by 2021. This, in turn, will attract talent and stimulate innovation in this field. Area. ”
Likewise, on this occasion, Marwan Al Zarouni, CEO of the Dubai Blockchain Center, said the UAE – and especially Dubai – has always been forward-thinking and fast-paced when it comes to future technologies, with no exception to cryptocurrencies and blockchain.
He emphasized that Dubai launched the “Blockchain Strategy 2020” in 2016 and it is already achieving its goals. Al-Zarouni also noted that the UAE Securities and Commodities Authority issued its decree in 2020 regarding cryptocurrency regulations, and the country’s central bank soon followed, which unveiled a value-regulating store that seeks to clarify how cryptocurrencies and other digital assets are used as saved value. When purchasing different goods and services.
The above rules are very detailed and seem to help position the UAE as a pioneer in adopting cryptocurrencies. Not only that, but it is also a solid foundation for start-ups and investors in the United Arab Emirates with a suitable and safe work environment.
UAE regulatory differences
Abbas highlighted his views on why the UAE’s regulatory framework differs today from most other countries, noting that the “Know Your Customer” and “Combating Money Laundering and Combating Terrorism Financing” financial laws are currently in effect in the region. Progressive compared to the laws of other countries. “World Economic Centers”.
In this regard, Saeed Al Darmaki, co-founder of Alphabit Crypto Fund, told Cointelegraph that the UAE has long been looking to the future by introducing technologies that support the cryptocurrency, and that the regulatory views of Arab energy plants look like this.