The UAE's Minister of State for Foreign Trade Thani Al-Zeyoudi

Rebeca Moen  Jan 22, 2023 09:09  UTC 01:09

0 Min Read

Thani Al-Zeyoudi, the minister of state for international trade of the United Arab Emirates, has predicted that cryptocurrency would play a "significant role" in the country's participation in global commerce in the future.

Al-Zeyoudi provided a number of updates regarding the United Arab Emirates' trade partnerships and policies heading into 2023 during an interview with Bloomberg that took place on January 20 in Davos, Switzerland, which is the location where world leaders are currently gathered for the 2023 World Economic Forum.

In his remarks pertaining to the cryptocurrency industry, the minister claimed that "crypto will play a big role for UAE commerce moving ahead," and he went on to emphasise that "the most important thing is that we establish global regulation when it comes to cryptocurrencies and crypto enterprises."

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 hub with crypto-friendly policies that also have sufficient protections in place: "We started attracting some of the companies to the country with the aim that we'll build together the right governance and legal system, which is needed." [Translation:] "We started attracting some of the companies to the country with the aim that we'll build together the right governance and legal system,

Al-remarks Zeyoudi's come less than a week after the UAE Cabinet adopted a new regulation, which, in essence, ensures that entities engaging in crypto activities must secure a licence and approval from the Virtual Asset Regulatory Authority. Al-remarks Zeyoudi's come as a result of recent developments in the cryptocurrency market (VARA).

Under the terms of the new legislation, businesses who fail to comply risk incurring penalties of up to $2.7 million.

This action adds to the "Guiding Principles" for the regulation and supervision of digital assets that were released in September by the financial regulator of Abu Dhabi's Global Market free economic zone.

The principles lay forth a welcoming attitude toward cryptocurrencies while also making a commitment to comply with international norms on anti-money laundering (AML), countering the funding of terrorism (CFT), and supporting financial sanctions.

In addition, Omar Sultan Al Olama, Minister of State for Artificial Intelligence and the Digital Economy of the United Arab Emirates, participated in a panel discussion at the World Economic Forum on January 19 that was centred on cryptocurrency.

Al Olama made the point that while the FTX scandal was a significant cause for worry, the United Arab Emirates (UAE) still intends to operate as a hub despite all that has transpired.

According to him, the fact that crypto firms choose the UAE to be their home is unquestionably a good thing.

The minister also distanced the United Arab Emirates from accusations that its towns, like as Dubai, tend to become major sites for discredited crypto personalities to run to. He said that "bad actors don't have a country and don't have a destination."

However, he did emphasise that governments do need to collaborate in order to prevent bad actors from fleeing the country and going on the run internationally.

"They are there in every single place.

You will see them in the Bahamas, you will see them in New York, and you will see them in London. What we need to do as governments is work together, and we need to work with the industry as well, to ensure that if someone does something wrong, he can't move from one place to the other, and you will see them there "he said.

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