Crypto will play ‘major role’ in UAE trade: Minister of Foreign Trade

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Crypto will play a major role in the future of UAE global commerce, UAE Minister of State for Foreign Trade Thani Al-Zeyoudi said.

Speaking to Bloomberg on January 20 in Davos, Switzerland, where world leaders are currently meeting for the 2023 World Economic Forum, Al-Zeyoudi provided a host of updates regarding UAE business partnerships and policies at the approach of 2023.

Minister Thani Al-Zeyoudi: Bloomberg

Commenting on the crypto sector, the Minister said that crypto will play a major role in the UAE’s commerce in the future, as he stressed that “the most important thing is that we provide global governance in this regarding cryptocurrencies and crypto companies”.

Al-Zeyoudi went on to suggest that as the UAE works on its crypto regulatory regime, the focus will be on transforming the Gulf country into a hub with crypto-friendly policies that feature also sufficient protection:

We have started to attract some of the companies to the country with the aim of building together the good governance and the good legal system, which are necessary.

Al-Zeyoudi’s comments come just a week after the UAE Cabinet introduced new regulations that essentially ensure that entities engaged in crypto business must obtain a license and approval from the Virtual Asset Regulatory Authority. (VARA).

If companies fail to do so, they will face fines of up to $2.7 million under the new law. The move comes in addition to the Guiding Principles for the Regulation and Supervision of Digital Assets that were issued by the financial regulator of the Abu Dhabi Global Market Free Economic Zone in September.

The Principles outline a friendly stance toward crypto while committing to comply with international standards for anti-money laundering (AML), countering the financing of terrorism (CFT), and financial sanctions support .

The UAE Minister of State for Artificial Intelligence and Digital Economy, Omar Sultan Al Olama, also appeared at the World Economic Forum as part of a crypto-focused panel on January 19.

Al Olama noted that while the FTX debacle was a major concern, the UAE still wants to be a hub despite all the ordeal.

Their [crypto companies] calling the UAE home is definitely a positive thing, he said.

Related: Abu Dhabi-Based Venom Foundation Launches $1 Billion Fund for Web3 and Blockchain

The minister also distanced the UAE from claims that its cities like Dubai tend to become key places to leak disgraced crypto figures, arguing that bad actors have no nationality and no background. destination.

He stressed, however, that governments must work together to prevent bad actors from going abroad.

You will see them everywhere. You’ll see them in the Bahamas, you’ll see them in New York, in London, and what we need to do as governments is work together, with industry as well, to make sure that if somebody does something wrong, he won’t be able to move from place to place, he said.

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