Crypto will play a “major role” in UAE trade: foreign trade Minister
According to Thani Al-Zeyoudi, the UAE’s minister of state for foreign trade, cryptocurrencies will go on to play a “major role” in the global trade of the United Arab Emirates.
Al-Zeyoudi presented a number of updates on the UAE’s trade partnerships and policies going into 2023 in an interview with Bloomberg on January 20 in Davos, Switzerland, where world leaders are presently assembled for the 2023 World Economic Forum.
Announcing that “crypto will play a big role for UAE trade in the near future,” the minister said in a statement on the industry. He added that “the most important thing is that we ensure global governance when it comes to cryptocurrencies and crypto enterprises.”
Al-Zeyoudi continued by saying that, as the UAE develops its cryptocurrency regulatory framework, the emphasis will be on turning the Gulf nation into a hub with crypto-friendly regulations and adequate safeguards in place:
“We started attracting some of the companies to the country with the aim that we’ll build together the right governance and legal system, which are needed.”
Al-Zeyoudi made the remarks one week after the UAE Cabinet unveiled new regulations, which essentially ensure that organizations involved in cryptocurrency activities must obtain a license and approval from the Virtual Asset Regulation Authority (VARA).
Companies who don’t comply with the new regulation risk fines of up to $2.7 million. The action supplements the “Guiding Principles” for regulatory and oversight of digital assets that were released in September by the financial watchdog of the free economic zone in Abu Dhabi’s Global Market.
The principles set forth a welcoming posture toward cryptocurrencies while also promising to follow international guidelines for fighting money laundering and terrorist funding and supporting financial penalties.
Omar Sultan Al Olama, the UAE’s minister of state for artificial intelligence and the digital economy, took part in a panel discussion on cryptocurrencies on January 19 at the World Economic Forum.
Al Olama pointed out that despite the fact that the FTX fiasco was a serious issue, the UAE still desired to be a hub.
He said “them (crypto companies) calling the UAE home is definitely a positive thing”
The minister denied claims that the UAE’s cities, like Dubai, frequently serve as important escape routes for disgraced crypto personalities, saying that “bad actors don’t have a nationality and don’t have a destination.”
Yet, he emphasized the necessity for cooperation between states to dissuade bad actors from fleeing to foreign shores.
He said:
“They are there everywhere. You’ll see them in the Bahamas, New York, and London, and what we as governments need to do is collaborate with the business community to make sure that if someone does something wrong, he can’t migrate from one area to another.”
