Expert Claims UAE Regulators Are Moving Closer Toward Crypto, Blockchain Adoption
Cryptocurrencies and blockchain may be two of the most controversial types of technology in recent memory. Businesses and investors are extremely optimistic about their role in the future of finance and business optimization, while many governments are somewhat skeptical about their adoption on a national level. Although many government leaders are working to heavily restrict or outright ban crypto and blockchain related tech, such as China and Russia, United Arab Emirates leaders seem to be openly embracing this new frontier.
According to a recent interview with CoinGraph, founder/CEO of Karm Legal Consultants Kokila Alagh claimed recent regulatory changes within the country are making it possible for crypto and blockchain businesses to move forward within “free zones”(minimally taxed/regulated areas of the UAE). Alagh stated one of the UAE’s largest regulatory agencies, the Securities and Commodities Authority (SCA), has made it clear the country is recognizing the potential of these cutting-edge technologies.
“The regulations provided certainty and have opened new opportunities in the UAE, which makes SCA a progressive regulator in the global landscape, as they haven’t ignored this vital growing sector and are continuously working on developing the frameworks to adjust as per these emerging sectors like DLT, blockchain.” Alagh told CoinGraph.
For instance, many of the governing bodies of these “free zones” have issued guidelines about the ways businesses can utilize digital assets for investing. An example would be with the Dubai Financial Services Authority (DFSA), which recently provided regulations regarding the tokenization of securities through distributed ledger technology. The Dubai Multi Commodities Centre (DMCC) has also made progress, allowing technology service providers to apply for special licenses to permit crypto commodities trading.
This is certainly an exciting development for both businesses and crypto enthusiasts within the UAE, and seems to follow in line with the region’s ultimate plan of becoming a crypto leader on the world stage. If the UAE does intend to claim status as a global hub for crypto, we can likely expect a more thorough regulatory plan for free zones in the coming months.
Edited by Maurice Nagle
