The United Arab Emirates chase crypto and blockchain adoption

UAE regulators are looking to develop an extensive crypto governance framework as part of its 2021 business agenda.
For quite a while, the United Arab Emirates has been one of the most progressive crypto nations on earth. Commenting on why the UAE is quickly becoming the destination of choice to several crypto/blockchain startups, Mazdak Rafaty, managing partner for Ludwar International Consulting FZC, told Cointelegraph:”If you ask anyone from the tech and startup sector any place in the entire world concerning the pace of regulations of the government, you will get exactly the same response:’It might certainly be quicker ‘ But, UAE has always been a pioneer in the adoption of new technologies and construction support regulatory frameworks to their advancement.” He opined that blockchain as a publication disruptive tech was recognized quite early by UAE regulators, as a consequence of which many governmental organizations were instructed not just to facilitate its development but actually use its benefits within a thorough e-government plan. Lastly, Rafaty added that while blockchain adoption was swift, cryptocurrencies certainly took longer time to understand, use and govern. Even in terms of crypto adoption, Abu Dhabi was one of the first areas to introduce a well-thought-out frame for exchanges and unique types of tokens back in 2018. The UAE has got the baseAt a time when many nations are still struggling to formulate comprehensive approaches to embrace crypto-enabled technologies in a compact fashion — with some even looking to execute blanket bans — that the UAE is apparently laying the foundation for an electronic ecosystem. Providing his perspectives on the topic, Mohammed Abbas, director of those Dubai Global Blockchain Congress, informed Cointelegraph that many endeavors, such as decentralized ride-sharing platform Drife and blockchain-based dream sports ecosystem DeFi Eleven, have now been in a position to draw interest from the private offices of UAE’s Royal Families as well as other players that are overburdened, including San Francisco-based VCs like the Draper Walled Garden, including:”In a bid to establish the speed and become a leader in blockchain engineering, UAE established Blockchain Strategy 2021 — pursuant to which 50% of authorities transactions will have been conducted with blockchain technologies by 2021. This, in turn, will attract talent and spur innovation in this region.” Similarly, on the topic, Marwan Alzarouni, CEO of Dubai Blockchain Center, opined the UAE — Dubai, in particular — has always been forward-thinking and fast-moving when it comes to any futuristic technology, together with cryptocurrencies and blockchain being no different.He emphasized that Dubai established its”Blockchain Strategy 2020″ in 2016 and is already achieving its objectives. Alzarouni further pointed out when it comes to cryptocurrency regulations,” the UAE Securities and Commodities Authority issued its regulation in 2020, which has been swiftly followed by the country’s central bank revealing the Stored Value Facilities regulation, which attempts to provide clarity as to how crypto and other electronic assets might be utilized as a saved value when buying various products and services.The above regulations are absolutely in-depth and appear to help position the UAE as a leader in the cryptocurrency adoption area. Not only that, but additionally, it stands to provide a good foundation for startups and investors from the UAE using the right and secure environment in which to operate.The UAE regulatory gap Elucidating his ideas on why the UAE regulatory landscape is different than most other countries now, Abbas pointed out the Know Your Customer, Anti-Money Laundering and Counter-Terrorist Financing laws which are now in place in the area are progressive than those of other”global financial hubs” On the topic, Saeed Al Darmaki, co-founder of Alphabit crypto finance, informed Cointelegraph the UAE was forward-looking using its adoption of crypto-enabled technologies for quite a while, together with the Arab powerhouses’ regulatory prognosis looking quite positive at the moment, including:”Regulated crypto trades will launch in the upcoming few months. With ESCA regulation, local banks need to be more receptive to crypto transactions on bank account. Incubators and accelerators are encouraging crypto businesses here today and will keep doing so. The government is very supportive of blockchain technology” A similar belief is shared with Austin Alexander, managing director for the MENA area of the cryptocurrency market Kraken, who believes it to date, the UAE continues to be among the most proactive areas globally in regulating cryptocurrency. In this regard, he pointed out the Abu Dhabi Global Markets was one of the very first regulatory jurisdictions to draft a frame from the ground up especially for digital asset trades, including:”No regulations would be perfect, and as crypto companies grow and expand from the UAE, the FSRA or other regulators might come to find there is room for improvement. That having been said, that the UAE is clearly establishing itself as one of the planet’s most populous authorities in regard to cryptocurrency and advanced industries widely.” Are natives supportive?On the topic of the way the local UAE population views the country’s tech-friendly stance, Rafaty opined that most residents have acknowledged the government’s blockchain initiatives. But he did add it will be some time before these jobs actually start to bear fruit.Additionally, in addition, he shared on the crypto side of things, most of his private and professional contacts in UAE are, to some level, entailed and/or invested in various crypto and altcoin offerings due to big part into the bullish expansion that has happened in the sector over the course of the last few months. Similarly, Alexander believes that UAE residents and companies tend to adopt new innovation more enthusiastically than most, and cryptocurrency was no exception. But he added that for some time now, UAE inhabitants have experienced some trouble investing in electronic assets, as there’ve been few valid local gateways for crypto market, including:”This has stalled adoption and reduced the capability for local companies to build upon the technologies. With recent regulations onshore to help further nurture innovation, we must soon see accessibility to virtual assets grow markedly. With domestic digital asset markets from the UAE, which have been the missing part of this puzzle until today, we should see a large boom in economic growth surrounding virtual resources ” Lastly, Abbas believes that neighborhood residents and companies from the UAE have quickly warmed up to the usefulness of their blockchain ecosystem and happen to be considering cryptocurrencies rather than just another financial instrument for monetary benefits but also as a way to market and settle transactions among users working in this domain.In his view, the challenges to entry are getting lower by the day and soon, mainstream retail crypto offerings will prosper within the country. “UAE is probably the only country that has been in a position to sponsor a number of the greatest blockchain summits and attract crypto leaders, think-tanks and investors onto a frequent platform to tackle the global issues concerning fiscal inclusion and neo-banking options”, Abbas added.Some of their interviewees have engaged in the International Blockchain Congress from Dubai on Feb. 9, hosted by Agora.

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