Crypto Future in UAE
UAE is renowned for being a global business hub. This part of the world is also very famous for its landscapes, skyscrapers, mega malls, and technology.
UAE is a standalone country in the world that is at the forefront of adopting innovative technologies, without worrying about expenditures. It has a place for everything, even if the space is required for the ‘digital asset industry’.
The country wants to adopt cryptocurrencies and for this purpose, it wants to have a full grasp of blockchain technology.
The country does not want to depend on oil because the Arabs know that the oil supplies are not going to last forever. Therefore, the entire region wants to get into the latest and advanced technologies.
As crypto-blockchain technology is considered to be the most advanced technology at present, the UAE wants to adopt it. It knows that the technology has a lot of potential to offer so it wants to take full advantage.
Thani Al Zeyoudi, UAE’s State Minister for Foreign Trades, has come to believe that crypto can play a crucial role in UAE’s trades.
These remarks were made by UAE’s State Minister during a CNBC interview for Bloomberg record in Switzerland.
Crypto Expansion Is Coming Soon In UAE
The Minister concerned said that ‘UAE has been focusing on expanding the number of projects and one such expansion relates to the crypto industry’.
He also said that when the matter involves regulations, UAE takes it very seriously. ‘Whether be it crypto or otherwise, everything is subject to regulation and oversight by the regulator’, clarified Al Zeyoudi.
He apprised that when the time of crypto expansion will come, they will ensure the laying down of a solid legal system and effective governance.
Al Zeyoudi also pointed out that for pursuing its objective of laying down a solid foundation, UAE had already taken steps. In this connection, a number of crypto industry giants have already been sent invitations.
Solid Foundation of Corporate Governance and Regulation
Another UAE’s Minister for Digital Economy and AI, Omar Sultan Al Olama, also shed some light on the crypto future in UAE.
He said in particular that UAE plans to introduce ‘balanced’ crypto regulations in the country. He also informed us that UAE is currently working with crypto firms but no operating license has so far been issued to any crypto firm.
He clarified that UAE’s crypto regulator namely ‘Virtual Assets Regulatory Authority (VARA)’ has been assigned the task to design standards of licenses.
Al Olama further informed that the regulator has already laid down a four-step license procedure to be fulfilled by crypto companies.
As regards the digital asset regulator, he said that VARA has been duly constituted and made functional in March last year.
Even the Digital Economy and AI Minister also reaffirmed the hope that crypto is going to have a phenomenal future in UAE.
Zero Licenses Issued by VARA So Far
Even VARA clarified that since its inception to date, it hasn’t issued a single license to any crypto entity, whether local or foreign.
It may however be noted that provisional licenses were in fact issued by VARA to a few foreign crypto firms. Amongst them was Binance at the top, FTX, Coinmena, OKX, etc.
However, a rumor was spreading that VARA had issued licenses to these firms which turned out to be untrue. In fact, provisional licenses only were issued by VARA at some point.
VARA clarified that provisional license holders have entered into licensing process and are at the initial stage which consists of a total of four stages.
It may be further noted that crypto is one of the fasted adopted sources of business in UAE. As per 2022’s study, the findings revealed that at least 11.5% of the UAE’s population is crypto owners.
These figures are huge considering that currently no crypto platform has been legally allowed to operate in UAE.