The country has already issued licenses for over 30 exchanges to be set up.
Wam picture file
The United Arab Emirates, Japan and Singapore have become pioneers in effective cryptocurrency market regulation, according to a leading European academic.
“As crypto assets go mainstream, their value has exploded in the past year and with a number of ambitious initiatives in Asia and the Gulf, digital assets are becoming a financial force to be reckoned with,” said Guy Burton, adjunct professor at the Brussels School of Governance, where he teaches politics and international relations.
In an article titled “Getting it right on crypto regulation,” published on BrusselsReport.eu, a website featuring news and analysis covering European Union politics, Eurozone affairs and investing, he pointed out that in the UAE, the Dubai Financial Services Authority explicitly included a crypto regulatory framework in its 2021 business plan.
“Since the beginning of the year, the country has started to put it into action. The United Arab Emirates has adopted elaborate regulations and created a dedicated regulatory body. The country has already issued licenses for more than 30 exchanges to be set up. This, along with officially sanctioned crypto mining, should mean that the country’s share of the global crypto market should increase by more than $26 billion from last year,” Burton explained.
By advancing the promotion of cryptocurrencies and providing official oversight, the UAE is putting them ahead of other countries and jurisdictions, which will be keen to see what effect the recent changes will have, the professor said.
He mentioned that while Singapore or the United Arab Emirates are not the size of the EU, they have another advantage: they can be fast. Countries like the UAE have a comparative advantage over some other jurisdictions that are just beginning their regulatory journey.
The UAE has gone beyond calling on existing authorities to work together. Unlike the EU, it doesn’t have years to wait for the legal framework to be fully in place, Burton noted.
“With measures already in place, the Emirati authorities are able to see what will work and what will not – and give it the ability to respond quickly and effectively. In summary, it is therefore very likely that many eyes will be on frontrunners such as Singapore and the United Arab Emirates in the coming years as the digital asset market consolidates its role in the future of finance,” said said the academic. —Wam
We wish to give thanks to the author of this article for this awesome material
The United Arab Emirates, A Forerunner in Cryptocurrency Regulation: A European Academic – News – Tech Tribune France
We have our social media profiles here and other related pages herehttps://metfabtech.com/related-pages/