The Central Bank of the UAE (CBUAE) has ordered financial institutions offering digital assets like crypto, NFT to verify identities on the transaction of digital assets starting next month. This is done to counter anti money laundering terrorism financing.
Due to the stringent crypto regulations in the United States, many companies offering crypto and digital assets were forced to move their operations overseas, UAE being their sweet spot due to its friendly and welcoming approach towards digital assets.
UAE Set to be the Next Crypto Hub
Khaled Mohamed Balama, the governor of CBUAE has said that they are they are trying best to counter any sort of money laundering and terrorism financing that could potentially disrupt the monetary ecosystem. Hence, they have given clear guidelines to financial institutions. The guidelines are 44- pages long that talks about these topics in detail.
Dubai has established a regulatory body called the Securities and Commodities Authority to oversee the digital asset industry in the United Arab Emirates (UAE). The authority has made it mandatory for companies based in the UAE that offer digital asset services (excluding those licensed to operate in economic free zones) to submit license applications.
In addition to implementing new guidelines to combat money laundering and terrorism financing, the UAE has made efforts to demonstrate its dedication and commitment to fostering a secure and properly regulated environment for cryptocurrencies, non-fungible tokens (NFTs), and other digital assets. The country has provided clear guidance in this regard.
Due to UAE’s digital assets friendly nature, crypto exchange Gemini has also bought a license to operate in the country. The exchange will set up offices in both Abu Dhabi and Dubai. As compared to the US, there seem to be a larger proportion of people interested in crypto and related securities.
