Crypto Adoption Initiatives Continue in the UAE

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By A D

The UAE is making notable strides towards embracing cryptocurrencies and blockchain technology- its regulators now welcome license applications from crypto firms.

The United Arab Emirates (UAE) has announced that its securities regulator, the Dubai Financial Services Authorities (DFSA), will start accepting license applications from crypto firms. The move is being seen as a significant step towards the integration of cryptocurrencies and digital assets into the UAE’s financial system.

The decision to accept lincense applications from crypto firms, though, comes as no surprise, as the UAE has been working towards establishing itself as a hub for fintech and blockchain innovation. The country has already launched several initiatives aimed at promoting the adoption of blockchain technology, such as the Emirates Blockchain Strategy 2021, which aims to implement blockchain technology in several sectors, including healthcare and transportation.

The DFSA’s decision to accept license applications from crypto firms is a significant development, as it will provide regulatory clarity to crypto companies looking to operate in the UAE. This move is also likely to attract more crypto firms to the country, as they will now have a clear path to operate legally and comply with regulations. It also signals towards a cleaner crypto space, with defined rules and framework in place.

To obtain a license, crypto firms will have to demonstrate that they can comply with the DFSA’s requirements regarding anti-money laundering (AML) and countering the financing of terrorism (CFT), among other regulations. The DFSA has stated that it will work closely with the firms to ensure that they ae able to comply with these regulations.

the dmcc's crypto centre dubbed as crypto freezone
The crypto freezoe in Dubai how has more than 500 crypto startups. Image Courtesy:Arab News

Apart from this new development, UAE has had a broad strategy to become a global leader in the fintech and blockchain industries. The country has a crypto-freezone in Dubai to work on regulatory frameworks. The bigger vision of the Dubai Smart Government has been to make Dubai the world’s first blockchain-powered city. The UAE’s efforts to promote adoption of cryptocurrencies and blockchain is not limited to this. Its CBDC project is well under progress and is set to complete first phase in 2024. The authorities are working on making the digital Dirham operational both domestically and internatonally.

The UAE has seen fintech and blockchain innovation as their gateway to diversify their economy from its traditional reliance on oil and gas, effectively creating jobs, attracting investment, and fostering innovation, making for a long-term economic growth.

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