UAE Prepares to Launch Nationwide Crypto Licensing System in Line with Global Standards – In the first quarter, the United Arab Emirates (UAE) plans to begin giving federal licenses to bitcoin service providers. The UAE will take a hybrid approach to cryptocurrency regulation.
The government is hoping that a national crypto licensing system will entice large corporations to relocate to the region.
The Securities and Commodities Authority (SCA) of the United Arab Emirates is close to finalizing legislation to regulate VASPs. The government is aiming that a national crypto licensing system will encourage large corporations to move to the region.
Late last year, the country completed a risk assessment of crypto assets. There were 14 public-sector agencies and 16 private-sector organizations involved in the evaluation.
The government came to the conclusion that proper regulation, rather than outright prohibition, can reduce the risk of cryptocurrencies being used in illegal financial schemes.
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UAE Prepares to Launch Nationwide Crypto Licensing System – According to the news outlet, the UAE’s crypto law takes into account the Financial Action Task Force’s (FATF) newest recommendations as well as regulatory techniques employed in the United States, the United Kingdom, and Singapore.
A hybrid approach will be used in the regulation. With advice from the central bank, the SCA will regulate the crypto business. Local financial centers might set up their own licensing procedures on a daily basis. The UAE government also wants to control the crypto mining industry, according to the official.
VASPs have already been granted licenses in certain of the UAE’s financial free zones. Binance and the Dubai World Trade Centre Authority reached an agreement in December to build a worldwide crypto hub.