The Minister of Foreign Trade of the United Arab Emirates believes that crypto currency will play a significant role in the country.
Thani bin Ahmed Al-Zeyoudi, the Minister of State for Foreign Trade UAE, believed (1) that crypto currencies would play a significant part in the worldwide trade of UAE in coming years
In an interview on January 20 with Bloomberg, Al-Zeyoudi presented a variety of updates on the various trade ties and policies that the Kingdom would implement in 2023.
The minister stressed the significance of global governance while discussing crypto businesses and crypto currency. According to Al-Zeyoudi, when the United Arab Emirates (UAE) creates its legal framework for crypto currencies, the primary focus will be making the Gulf country crypto-friendly while also providing necessary protections.
"We started reaching out to some of the businesses in the intention of getting them to the country so that we can develop together the right governance and legal framework that is required,"
Al-Zeyoudi suggested that the United Arab Emirates had to focus on its crypto currency regulatory framework. The UAE Cabinet adopted brand new legislation only last week that requires firms operating in crypto operations to seek a license and permission from the Virtual Asset Regulatory Authority (VARA).
Under the terms of the new legislation, businesses that fail to comply might be subject to fines of up to AED 10 million ($2.7 million).
The principles indicated a favorable stance toward crypto currencies while also committing to conform to international norms for combating the laundering of illicit funds (AML). In addition, it would support financial sanctions and work to stop financing terrorist organizations.
UAE wants to become a center for crypto
The minister of state for ai technology and digitalization, Omar Sultan Al-Olama, also participated in a debate at the World Economic Forum on January 19 centered on crypto currency. Even if the FTX scandal was a significant cause for concern, Al-Olama stated that the existence of crypto currency firms in the UAE was undeniably a positive development.
The minister also defended the United Arab Emirates against allegations that its cities, such as Dubai, served as havens for disgraced figures in the crypto currency industry to flee.
He claimed that bad actors were to blame for the situation because they did not have a nationality and did not have a destination. Moreover, he also stressed the need for states to cooperate to stop criminals from escaping to other countries.
"You won't have any choice but to come into contact with them. You will run into them in the Bahamas, you will run into them in New York, and you will see them in London. As policymakers, we have to find ways to work around one other, and we have to work together with the market to ensure that if someone commits a transgression, he will not be able to migrate to a different region to escape the consequences of his actions "he stated.