The United Arab Emirates (UAE) is set to issue federal licenses for virtual asset service providers by the end of the first quarter in an effort to attract some of the world’s largest crypto companies to the country.
BNNBloomberg‘of February 17 A government official, according to his news UAE Securities and Commodities Authority (SCA) amend the legislation to allow the establishment of virtual asset service providers in the country. in its final stage said that.
Some of the country’s financial free zones have already issued permits to virtual asset service providers, according to a government report. According to the report Dubai Multi Commodity Center has 22 licenses, Abu Dhabi Global Market has 6 licenses and Dubai Silicon Oasis Authority has at least one license the Middle East headquarters of most Wall Street banks. Dubai International Financial Centerdoes not have a license to allow virtual asset service providers.
Abu Dhabifor licenses Paris-based Financial Action Task ForceAlong with the latest guidance from in USA, UK and Singapore The official said that he considered the strategies implemented. Reflecting how the UAE is embracing the crypto industry stated.
for the surveillance of the country a hybrid approach The official who stated that he adopted SCAHe said that .
The UAE official also noted that the government’s high electricity consumption and consequent environmental impact is an industry that has been scrutinized by environmentalists and politicians around the world. want to build an ecosystem for crypto mining and industry will be regulated told.
UAEon virtual assets to attract more businesses to the country later last year. 14 public sector institutions and 16 private sector institutions containing a risk assessment had published. In the report, There is a high risk that virtual asset service providers could be used for illegal financing. However that the government can reduce these threats with appropriate regulations rather than a direct ban. was specified.
A nationwide regulation UAEof, Singapore and Hong Kong It is thought to help it compete with rival financial centers such as