UAE Crypto Guidance Advances Further

GB Market Commentary 31/05/2023

by Marcus Sotiriou

The UAE took another step toward regulatory clarity for the crypto industry today, as the Central Bank of the UAE issued guidance surrounding the risks when dealing with digital assets and digital asset brokers. This is part of the country’s attempt to attract crypto companies to the region.

The guidance provided specifically details AML and CFT measures for crypto companies, such as digital asset brokers, whilst taking into account recommendations of the global watchdog known as the Financial Action Task Force (FATF). These rules will come into play in one month.

The firms this will impact include licensed financial institutions in the United Arab Emirates, such as banks, finance companies, exchange houses, payment service providers, registered hawala providers and insurance companies, agents, and digital asset brokers.

His Excellency Khaled Mohamed Balama, Governor of the CBUAE, said, “The new guidance related to the virtual assets sector contributes to strengthening the supervisory and regulatory frameworks of the Central Bank to combat money laundering and the financing of terrorism.”

“We are constantly working to enhance efforts and strengthen the awareness of licensed financial institutions to prevent all kinds of financial crime activities, and reduce potential risks to protect the financial and monetary system and maintain its soundness and stability, in line with the Financial Action Task Force standards.”

The UAE is clearly advancing past other major jurisdictions like the US, as US companies such as Coinbase have applauded UAE regulators.

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