Emirati authorities prepare federal licenses to expand crypto in the UAE

The United Arab Emirates is preparing federal licenses that will enable global companies to conduct their business within the country. The country is also gearing up to build its own crypto mining ecosystem.

Bloomberg recently reported UAE’s plans to create a crypto-friendly space in the Emirates, building on their existing legislation and inviting more VASPs (Virtual Asset Service Providers) to operate in the country.

These plans to further situate the Emirates as a crypto-friendly nation Dubai follows existing regulation that has enabled some regions in the UAE to become crypto-friendly regions. In Dubai, for example, around 22 crypto platforms have been given licenses to operate as VASPs. 

Dubai recently revealed details of a new plan for a "crypto hub" in the global city, which aligns with the city's plans to become a progrssive economic sector. The Dubai Government Media Office revealed the plan to set up a crypto hub in the Dubai World Trade Center, which is part of the digital transformation of the city.

The Dubai Government Media Office noted in a statement:

“The Dubai World Trade Centre will collaborate with the private sector and relevant entities in Dubai to create an attractive environment for the sector, and enforce rigorous standards for investor protection, Anti Money Laundering (AML), Combating the Financing of Terrorism (CFT) compliance and cross border deal flow tracing,"

The Securities and Commodities Authority is currently in the process of finalizing legislation that will enable VASPs to be set up across the country, with Binance expected to be one of the crypto companies that is ready to expand across the nation. 

As part of the regulatory expansion of cryptocurrencies, The bloomberg article reported that a UAE official stated that the government intends to build an ecosystem for crypto mining, but is also mindful of the concerns associated with crypto mining, including cybercrime. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.