According to Bloomberg’s latest report, The United Arab Emirates is soon to issue federal licenses for cryptocurrency and virtual assets. In light to attract more tech-savvy industry and crypto exchange companies, the middle eastern country is setting a framework.
The framework for drafting laws shall be implemented in the country by end of the first quarter. Considering the positive approaches taken by many countries like the US, India, Singapore, the UAE is also willing to make efforts in crypto undertakings. The Securities and Commodities Authority (SCA) has almost completed the structural framework of drafting laws. The SCA and central bank of UAE are working together for day-to-day procedures on licensing.
Moreover, the federal laws are concerned with electronic transactions of virtual assets, combating cybercrimes, financial tokens, their security, and many more. Also, the federal laws describe facilitating the crypto exchange market in the country and providing custodial services for crypto assets. The 37-page report of federal law contains 12 chapters and 30 articles giving crystal clear details about implementing regulation.
In December, the government of Dubai considered providing an agreeable environment to the crypto service industry in the Dubai World Trade Center. Soon, Binance which is the world’s largest crypto exchange signed a cooperation agreement with the trade center.
Further on this, The Dubai Multi Commodities Center regulated a framework for crypto firms in 2020. It allowed 22 licensed companies for trading in its free-trade zone in the UAE.
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