Crypto to play ‘major role’ in UAE trade: foreign trade Minister

Cryptocurrencies will play an "important role" in advancing the UAE's global trade, says UAE Minister of State for Foreign Trade Thani Al-Zeyoudi.

Speaking with Bloomberg on January 20 in Davos, Switzerland, where world leaders are currently meeting for the World Economic Forum 2023 —Al-Zeyoudi provided a host of updates on the UAE's trade partnerships and policies heading into 2023.

Commenting on the cryptocurrency sector, the minister stated that “cryptocurrencies will play an important role in the future of UAE commerce,” noting that “the most important thing is that we ensure global governance when it comes to cryptocurrencies. and cryptocurrency companies.

Al-Zeyoudi went on to suggest that as the UAE works on its crypto regulatory regime, the focus will be on making the Gulf country a center with crypto-friendly policies that also have enough protections:

“We started bringing some of the companies into the country with the goal that we build together the right government and legal system that is needed.”

Al-Zeyoudi's comments come just a week after the UAE Cabinet introduced a new regulation that essentially ensures that entities engaged in crypto activities must obtain a license and approval from the Virtual Assets Regulatory Authority (TO BE).

If the companies fail to do so, they will face fines of up to $2.7 million. under the new law. The measure is added to the "Guiding Principles" for regulation and supervision of digital assets which were published by the financial regulator of the Abu Dhabi Global Market free economic zone in September.

The principles describe a friendly stance towards cryptocurrencies while committing to comply with international standards against money laundering (AML), combating the financing of terrorism (CFT) and supporting financial sanctions.

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

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

"Them [crypto companies] Calling the United Arab Emirates home is definitely a positive thing,” he said.

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The minister also distanced the UAE from claims that its cities like Dubai tend to become hot spots for disgraced crypto figures to flee, arguing that “bad actors don't have a nationality and they don't have a destination.”

However, he stressed 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, London, and what we have to do as governments is work together, with the industry as well, to make sure that if someone does something wrong, they can't move. from one place to another,” she said.