"Abu Dhabi’s international financial centre has announced to impose intensive regulations for the crypto space. This step was taken into consideration, affecting the exchanges and intermediaries in the financial sector."
Yesterday, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market announced that the regulators are currently reviewing the development of the frameworks industry firms and relevant authorities.In future, the regulatory moves would be as per the betterment of the international financial sector and make the crypto market as a more friendly shore for exchanges and for firms.
“Reviewing and considering the development of a robust, risk-appropriate regulatory framework to regulate and supervise activities of virtual currency exchanges and intermediaries. In considering such a framework, the FSRA intends to consult and work closely with industry participants and relevant professional bodies.”
In October, the Abu Dhabi’s financial markets regulator precluded a “one size fits all” regulatory system to the sector, separating ICOs as securities and cryptocurrencies as commodities.
After the prohibitive ban on Bitcoin by the UAE’s central bank a year ago, the cryptocurrency regulations are being resurrected and amended as per the need. Yesterday’s announcement threatening the public on the investment risks in ICOs by UAE’s Securities and Commodities Authority (SCA), the capital’s financial markets watchdog.
In the announcement, the FRSA had also denoted cryptocurrencies as a medium of exchange. Uses of cryptocurrencies in payments will be advanced as an endeavour of friendly regulations, only between the 40 companies of the international financial center.
“The FSRA notes that virtual currencies, although not legal tender, are gaining interest globally as a medium of exchange for goods and services.”
As of now, the central banks of the UAE and Saudi Arabia are simultaneously working in collaboration for the development of a cryptocurrency that could provide access to cross-border transactions only transactions with the help of blockchain-based cryptographic token. Meanwhile somewhere the region, Dubai is exploring the use of blockchain technology in sweeping measures in areas including the government, a state cryptocurrency, a citywide payments system and even its airport.