United Arab Emirates Okays Legislations to Attract Prominent Cryptocurrency Companies
UAE is looking at all avenues to become a major attraction to lure global crypto firms, and in that process, the country thought it best to amend the laws guiding cryptocurrency and mining. The government told Bloomberg that it would enact crypto-friendly regulations that would attract firms in the crypto sphere from around the globe to operate in the country.
The government believes that by luring Virtual Asset Service Providers to UAE, the country will outdo popular crypto hubs, such as Singapore, Hong Kong, and South Korea. Aside from that, the UAE is setting its sights to become a major mining hub globally.
SCA Drafts Final Legislation Amendments for VASPs
On Thursday, an official from the government said that the Securities and Commodities Authority of UAE is into the final stage of the legislation that would enable crypto firms to set up operation bases in the country. Already, Binance has indicated interest to set up an official office in the country.
The world’s largest crypto exchange has been on the lookout for favorable locations to expand its crypto service offerings since it withdrew its application for operation from Singapore’s MAS. Given the steps taken by the UAE to set up friendly regulations, Binance and many other prominent blockchain firms could establish their presence in the country.
Attracting such companies could also put UAE on the global crypto map as a significant crypto hub, joining the likes of Hong Kong and Singapore. The Asian countries have stepped up their pursuits for regulations that would enable crypto firms to function at full scale.
According to reports, some areas in the UAE have already given out licenses to several VASPs, allowing them to operate and pay taxes. The official report states that as many as 22 companies have been licensed to function in the country.
Crypto Mining Also At the Forefront
Attracting crypto giants to the country via regulations is not the only thing UAE is focusing on. The ambitious country is bent on also becoming a major mining hub by building its ecosystem. However, the sector will be no different from others, as it would be heavily regulated.
Remember that crypto mining is energy-intensive and could deplete a country’s power supply if not adequately regulated. Last year, this PoW activity caused blackouts in some countries, such as Iran and Kazakhstan. The high energy consumption is reportedly one of the reasons China banned mining in June and cryptocurrency use altogether in September.
UAE’s regulations will also fight against illicit financial activities like fraud, tax evasion, and money laundering. Regulating the industry is a better choice than banning mining and VASPs altogether.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
