UAE making a lot of progress in the field of crypto

Muhamed abdo - | Business

Experts told Arabian Business that the UAE is "ahead of the curve" in regulating bitcoin and digital assets, predicting a legal framework within five years.  

With digital asset valuations fluctuating, experts warned that bitcoin regulation was necessary for long-term viability.

In the UAE, Binance's Global Head of Market Surveillance Vladimir Contreras and Chen Arad, co-founder and CXO of Solidus Labs, called for a strong regulatory framework to protect investors and the market.

UAE making a lot of progress in crypto

Arad thinks it will take five years to create a digital asset regulatory framework in the Gulf, whereas Contreras thinks it may take three.

“With the UAE's pace, three years. Contreras told Arabian Business that the business will have more clarity and a suitable framework.

It's hard to say, but if I had to guess, I'd say five years. "After this bull market, and with the really impressive regulatory and industry innovation that is happening here, then it's going to be a massive industry in the UAE and it will become a very, very important hub for crypto," Arad added.

Contreras disagrees with the idea that crypto and digital asset regulation will deter investment. Clear standards can reassure investors, making the country more attractive for investment.

Contreras said the UAE and industry are ready for regulation. “What the authorities have done here in recent years is great and will benefit the economy.”

His comments come as the crypto sector recovers from a wave of bankruptcies and failures in 2022, which sparked calls for better regulation, especially in the US.

The industry craves regulatory clarity. "The UAE is ahead of the curve," Arad added.

“We [Solidus Labs] just put out a detailed compliance playbook for how companies can use our solution to comply with regulation, and to do that, there needs to be clear regulatory requirements, which is not given in a lot of other places.”

He noted that regulatory clarity in decentralised finance is continuously evolving.

“It’s a dynamic industry. It’s not like authorities will issue requirements and everything will be clear.”

Too many cooks?
Experts say overregulation is the largest crypto market regulation issue.

“Too many regulatory authorities are difficult. “It's hard when you don't know where to go,” Contreras added.

Innovation will shape UAE regulation, I believe. Remember VARA, SEA, and FSRA. Many regulations. I think they should work together to implement something that applies to the full UAE, because right now it doesn't.”

Crypto regulation is difficult due to its decentralisation. Multiple regulatory authorities can be confusing, because some cannot enforce regulations on people from other countries.

The merging of on- and off-chain transactions and the rise of decentralised finance (DeFi) worsen this issue. While present regulatory coverage may be sufficient, authorities must have the capacity to act and enforce legislation to preserve the crypto environment.

“We need industry collaboration to close this gap,” Contreras said.

He added the UAE market is well-regulated, so market abuse and insider trading can be prevented.

“The policies and regulations are there, but companies just need to follow them and collaborate with the regulators again and also be open-minded and adaptable to changes in the industry because it’s an evolving industry with so many things happening and so many products.

Monitoring market manipulation in one market might be difficult. Market issues vary. How to close that gap? Technology helps there. We need holistic systems to close the gap.”

Arad agreed with Contreras that on- and off-chain components make market misuse difficult to understand.

Digital assets are the first asset class with non-exchange-native assets. That implies anyone may create an exchange anywhere and trade Bitcoin effortlessly on-chain or off-chain.

Solidus Labs' market abuse monitoring system faces a "complex reality" because 80% of market activity is off-chain.

“It’s critical to have crypto native systems that can unify and understand risk both across on and off chain that are utilising new technologies like machine learning to not only look for forms of behaviour that we know from traditional markets like wash trading, spoofing, and pump and dumps, but also we’re constantly looking for new kinds of anomalies that are unique to crypto,” Arad said.

“In addition to just following regulation and seeing what your regulator requires—usually a comprehensive, holistic, thoughtful programme that is constantly updated, etc.—you also just need to be proactive, and really look for crypto native tools that address the crypto native challenges.”

About Author

Muhamed abdo
Muhamed abdo
490 Total posts

Read Also

Dubai Real Estate Sector Reports $4.3 Billion in Transactions Last Week

Last week, Dubai's real estate sector saw a remarkable surge in transactions, with a total value exceeding AED15.9 billion ($4.3 billion), according to data released by the Dubai Land Department.

Qatar Real Estate Sector Achieves $110 Million in Weekly Transactions

Qatar's real estate sector recently witnessed a bustling week of transactions, amounting to more than QR398 million ($109.4 million) from June 9 to 13, 2024, according to official data from the Ministry of Justice's Real Estate Registration...

UAE: "Emirates Airlines" and "Flydubai" schedule 4.36 Mn seats for June flights

Data from OAG reveals significant growth in seat capacity for Emirates Airlines and Flydubai ahead of their summer flight schedules. Together, these airlines will offer approximately 4.36 million seats on international flights departing in June 2024....

UAE: First-class football clubs exempt from Dh5-million fines in recent decision

The UAE Football Association (UAEFA) has announced a significant initiative to support First Division clubs by waiving all accumulated fines totaling Dh5 million from previous seasons.

Dubai Unveils Major $78 Mn Reservoir Project to Enhance Water Storage Capacity

The Dubai Electricity and Water Authority (DEWA) has announced the commissioning of a new water reservoir in Enkhali, a strategic move aimed at safeguarding Dubai's water supply in the event of emergencies.

Vietnamese EV manufacturer "VinFast" launches new regional headquarters in Dubai

The Dubai International Chamber has played a pivotal role in supporting VinFast Trading and Production Joint Stock Company, a pioneering electric vehicle manufacturer from Vietnam, in establishing its regional headquarters in Dubai.

Abu Dhabi launches massive $6bn Arabian Hills project on Dubai to Al Ain road

The Arabian Hills Real Estate Development Company proudly unveils its flagship project, the Arabian Hills Estate, marking a significant milestone in the realm of real estate development in Abu Dhabi.

Urgent UAE: Implementing the “noon work ban” starting mid-June

The Ministry of Human Resources and Emiratisation has declared the implementation of a prohibition on working outdoors in direct sunlight and open areas. This ban will be in effect from June 15th until September 15th, between the hours of 12:30 PM...

UAE: 5 potential risks of “remote” work

The UAE Government Cybersecurity Council emphasized the significance of safeguarding the remote work environment, highlighting the potential hazards that users may encounter on their devices. It emphasized the need to deploy robust security measures...

A statement from Sheikh Mohammed bin Rashid regarding work in the private sector

It is His Majesty In the United Arab Emirates, Sheikh Mohammed bin Rashid Al Maktoum, who holds the positions of Vice President, Prime Minister, and Ruler of Dubai, assessed the outcomes of the Emiratization plan implemented in the private sector....

Future Jobs in Emirates: The labor market is a criterion for choosing a field of study

Academic advisors have verified that the labor market has experienced significant transformations in recent years, profoundly impacting university majors. These changes have redirected students' focus towards emerging majors that were previously...

Dubai Police announces 150 vacancies

By announcing the availability of 150 job opportunities for national and reserve service recruits, the Dubai Police General Command is providing these individuals with the opportunity to become part of an innovative and advanced police work...

UAE jobs: Emirates hotels provide 4,000 new jobs

The best hotels in the Emirates provide employment opportunities for thousands of job seekers. job seekers in the uae hotels

Dubai: A company made 16 of its workers millionaires in their honor

In Dubai, a company has made sixteen of its employees millionaires in their honor.

Dubai Court: Worker compensation of 500 thousand UAE dirhams

The Dubai Civil Court has issued a ruling that mandates a restaurant and two of its supervisors to provide a sum of 500,000 dirhams to a worker who sustained a wrist-level amputation as a result of their right hand slipping into a meat-mincing...

What happens after applying for a work permit in Canada?

Prior to coming to Canada, it is necessary to submit an application for a work permit. Foreign workers who wish to apply for a visa while located outside of Canada will be required to submit their application to a visa office situated outside of...

UAE: the details of the 10-year golden commercial license for expatriates

The United Arab Emirates has announced a golden commercial license for expatriates that is valid for ten years.

UAE: Important statement to citizens and residents when purchasing from sales outlets

Abdullah Sultan Al Fan Al Shamsi, the Assistant Undersecretary of the Ministry of Economy for the Commercial Control and Governance Sector, emphasized the importance of consumers retaining purchase invoices. This is crucial as these invoices serve as...

Dubai: A fine of 100,000 dirhams will be imposed on the establishment owner who violates the labor law

The Dubai Court of First Instance issued a second ruling against the establishment owner for violating the Emiratisation policy in the "Nafes" program. The owner was fined 100,000 dirhams for engaging in fraudulent Emiratisation practices....

The UAE announces the details of reducing working hours in Ramadan for the public and private sectors

Workers in the private sector will have a two-hour break each day during the holy month of Ramadan, according to an announcement by the country's Ministry of Human Resources and Emiratisation.

UAE: Banks warn against closing credit cards in this case

Banks in the country will close credit cards with balances exceeding the allowed credit limit starting May 1st, as per new terms and conditions sent to customers, a copy of which was obtained by Emirates Today.

UAE: Announcing an increase in gasoline and diesel prices starting in March

The Fuel Prices Monitoring Committee has authorized a rise in gasoline and diesel prices for March 2024, with an increase ranging from 15 to 16 fils per liter for gasoline and 17 fils per liter for diesel compared to February 2024 pricing.

Bitcoin price reaches $60,000 and is approaching its highest level

The price of Bitcoin is close to reaching its highest price, as it is currently at $60,000

UAE: Announcing job opportunities with salaries from 5,000 to 20,000 dirhams

The portal "Kaddar", linked to the Human Resources Department in Ajman, provided job opportunities for citizens in various government and private sectors in the emirate. The Majid Al-Futtaim Group announced 15 job openings with wages...

Canada announces lucrative job opportunities that do not require a certificate

Canada announced that there are many good jobs that can be accessed without a university degree, and these are some of them:

Urgent UAE: Categories excluded from the provisions of the “New Pensions Law”

The General Pensions and Social Security Authority stated that Decree Law No. (57) of 2023 applies to citizens entering the workforce for the first time starting from October 31, 2023, with any employer in the federal government or local...

Urgent UAE: The employer will be fined from 50 thousand dirhams to 200 thousand dirhams in this case

The Ministry of Human Resources and Emiratisation has cautioned private sector businesses and employers not to hire persons without valid work permits from the Ministry, even for trial employment, whether in businesses or as support staff.

Abu Dhabi: Ruling that a female employee is entitled to compensation amounting to 120 thousand dirhams

The Abu Dhabi Family, Civil and Administrative Claims Court mandated a corporation to pay an employee 120,000 dirhams for breaching an employment contract where she was supposed to work for a salary of 37,000 dirhams. After the company requested...

A fine for violating the employment of non-UAE nationals in professions prohibited to them