The United Arab Emirates is the world’s largest, according to a government official. cryptocurrency It is preparing to “issue federal licenses for virtual asset service providers (VASP)” by the end of the first quarter to attract companies to itself.
United Arab Emirates Trying To Catch Rival Countries In Cryptocurrency
The government official, who did not want to be named due to government policy, said the country’s Securities and Commodities Authority’s legislative amendment to set up virtual asset service providers is in the final stages.
Binance, the world’s largest cryptocurrency exchange, is one of the leading institutions that want to increase its influence in the country. According to experts, the United Arab Emirates plans to get ahead in its race with Singapore and Hong Kong in cryptocurrency trading by introducing a nationwide licensing system for virtual asset companies.
Some of the country’s financially independent regions have already issued permits for virtual asset service providers.
Seeking to attract more investment in the country, the UAE completed a virtual asset risk assessment last year involving 14 public sector institutions and 16 private sector representatives. While it was stated in the report that the risk of virtual asset service providers mediating illegal financial activities is high, a good regulation was requested to reduce these risks instead of banning these assets.
An Ecosystem for Cryptocurrency Mining Will Be Built in the Country
In his statement, the UAE official stated that the Abu Dhabi administration evaluated the strategies implemented by the USA, the UK and Singapore, along with the latest guidance prepared by the Financial Action Task Force. According to the official, the fact that the UAE has left the door open to the crypto sector indicates that it will adopt this technology.
The UAE official also bitcoin and said that he plans to build an ecosystem for the cryptocurrency mining industry and that this industry will also be regulated.
However, it was learned that Binance has formed a local team for the country.
*Not investment advice.