United Arab Emirates Exploring Friendly Regulations to Boost Crypto Growth

Authorities in the United Arab Emirates (UAE) are exploring a friendly regulation that will accommodate Virtual Assets Service Providers (VASPs) looking to make the region their home. As reported by Bloomberg News citing an anonymous government official, the Securities and Commodities Authority is in the final stage of amending legislation to allow VASPs to set up operations in the country.

The UAE is not in any way a hostile nation when it comes to embracing cryptocurrencies and other innovations associated with blockchain technology. The Emirates Post Group was the first in the region to debut NFT-based stamps. However, the new push will establish the country as one of the key crypto hubs in the Middle East, a title that is currently fitting for the likes of Turkey and Lebanon.

According to the source, the country is exploring a nationwide licensing scheme for crypto service providers, a move that will complement a related push by some of the country’s free trade zones that have already granted such licenses to crypto-based firms. 

Per the Bloomberg report, the Dubai Multi Commodities Center has issued as many as 22 licenses, while Abu Dhabi Global Market has six and Dubai Silicon Oasis Authority has at least one, according to a government report seen by the media unicorn. Amidst this spate of approvals, the Dubai International Financial Centre, known in the Middle East as the hub for most Wall Street banks, has no VASP-issued license thus far.

United Arab Emirates to Providing Sound Regulation for Mining

The proposed regulations coming to the United Arab Emirates is notably going to create a soft landing to establish the zone as a hub for Proof-of-Work (PoW) mining. With the government official confirming that the crypto mining operations in the country will be regulated, UAE is now willing to embrace a venture that has come under intense fire for its environmental unfriendliness across the board.

At present, the Central Bank of Russia, as well as Erik Thedéen, the vice-chair of the European Union Securities and Markets Authority (ESMA) have raised motions to ban Bitcoin mining in both Russia and the European Union respectively. 

With differing outlooks in relation to BTC mining, the United Arab Emirates is looking beyond the negativities that other regulators have publicized over the years, and hopes its embrace of cryptocurrencies will bolster its drive toward a digital future.