Countries in different regions of the planet are now developing crypto-friendly strategies. Despite the complications of the blockchain world, the global community is engaging in crypto-related services. The developed world is eyeing crypto as a replacement to fiat.
Whereas the developing world is pursuing crypto as an investment asset to make profits. Nevertheless, crypto is becoming a big hit worldwide. Countries like UAE and Russia are the latest to show a soft corner to the use of crypto.
Credible reports from different media outlets explain that the United Arab Emirates is looking to amend its local laws in favor of the crypto industry. The country plans to attract global crypto giants like Binance which is the largest cryptocurrency exchange in the world. Moreover, UAE can also become a friendly state for crypto mining operations under the light of new law amendments. The government intends to create its own mining ecosystem.
UAE amends VASP legislation
The UAE government has expressed its plans to issue federal licenses to crypto-related global companies. After the issuance of these licenses, these companies will be able to operate freely in the country. As a result of these crypto-friendly strategies, UAE can outperform crypto hubs like Singapore and Hong Kong. Both of these countries are also planning new regulations to allow crypto platform operations at scale.
In recent developments, the local regulator Securities and Commodities Authority is initiating amendments to the local laws. Under these amendments, VASPs (virtual asset service providers) will be able to establish themselves in the United Arab Emirates. However, government officials that have shared this news have remained anonymous.
There are regions of the UAE that have authorized VASPs to work and operate freely. However, they have to pay taxes for their operations. As of now, around 22 crypto platforms, including Binance have received their licenses.
The government of UAE maintains a safe stance that it would rather regulate VASPs than completely ban them. These regulations also include points over money laundering and fraudulent activities related to crypto.
Nonetheless, the developing news from the gulf country has received positive feedback from the global crypto community. The country is now adding itself to the list of states that are regulating and legalizing the use of crypto. As a result, the crypto community of the UAE will have a more secure and private experience on different crypto platforms. Exchanges like Binance will also have a fair shot at a wider crypto-friendly audience.