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UAE's Securities and Commodities Authority seeks industry feedback on crypto assets draft regulation

The SCA has drafted a policy framework for cryptocurrencies, a move that may push the country as the leader in the digital space as the race in the crypto-verse continues to heat up.

Photo via Unsplash

Mon, 28 Oct 2019, 09:58 am UTC

The United Arab Emirates recently drafted a resolution that would aim to regulate cryptocurrencies and provide clarity for any crypto initiatives moving forward.

The Securities and Commodities Authority (SCA) has published a draft policy for crypto assets regulation. The draft covers a range of activities related to cryptocurrencies - their issuance, circulation, as well as custody.

The objective is to provide a clear framework to regulate and work with cryptocurrencies in the region, FXStreet reported. The key focus is on protecting investor interests and reducing financial crime.

"The Authority has invited all parties concerned with the capital market in the country from dealers of various categories: investors, intermediaries, financial analysts, researchers, media and interested parties and others to review the draft decision and express their views on it by no later than 29 October, in order to get acquainted with the observations of industry and the views of dealers and those interested in the market and domestication. Their proposals to be taken into consideration when preparing the final wording of the system," the SCA said.

So what does this mean, exactly? Well, blockchain expert Sukhi Jutla said that this is a great step for the crypto-verse as regulation would usually translate to trust among businesses interested in joining the growing digital race, Cointelegraph reported.

Governments examine cryptocurrencies

“They are signaling that they are open to exploring this area and by creating guidelines they are giving more reassurance, confidence, and stability to business owners who may want to enter this field. The UAE has been smart enough to understand that this innovation will grow in years to come and they don’t want to miss it. I wouldn’t be surprised if the UAE becomes the leading nation in this space just as they did with the oil and property space,” Jutla said.

The UAE is just one of the many countries who are slowly and warily trying to integrate cryptocurrencies. In March, Canada was reported to be looking into introducing regulations for crypto exchanges, while ensuring it’s not stifling the innovation in the field. Even though the country has been wary of cryptocurrencies following the QuadrigaSX incident, it’s still willing to provide some breathing room for the nascent industry to breathe and grow.

China to create its own cryptocurrency

Meanwhile, China – the country that’s been imposing heavy regulations on Bitcoin and other cryptocurrencies – have also slowly changed its stance as well. Last month, reports started pouring in that China is looking to create the central bank digital currency that will serve as a legal tender operating in the digital space. It will be backed by reserves of valuable assets that are present in the central bank.

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