Other BriefingsCryptocurrency To Play ‘Major Role’ In UAE Global Trade – Minister of Foreign Trade
Thani Al-Zeyoudi, the UAE’s Minister of State for Foreign Trade declared that crypto would have a crucial role in UAE’s global trade, speaking at the World Economic Forum’s (WEF) annual summit at Davos. Notably, Al-Zeyoudi said that the UAE seeks to have significant regulations on crypto to promote further growth in the already flourishing crypto industry.
Al-Zeyoudi said the Emirates would ensure global governance of crypto: “Crypto will play a major role for UAE trade going forward…The most important thing is that we ensure global governance when it comes to cryptocurrencies and crypto companies.”
Such moves could well position the UAE as a leading global exchange hub for Cryptocurrency transactions, especially as a slow fracturing of trust in the global SWIFT payments network is occurring as the United States has begun weaponizing the Dollar and Euro.
Al-Zeyuodi’s remarks follow on from those made last week by the UAE’s Sheikh Mohammed bin Rashid Al Maktoum, the Prime Minister and ruler of the United Arab Emirates, who announced that the country has created a new law regarding crypto ensuring “much warranted international standards for crypto governance”.
Following the announcement, Al-Zeyoudi reiterated that the Emirates have implemented crypto regulations with an intention to transform the Gulf country into a fully established crypto hub, with crypto-friendly policies, saying that “We started attracting some of the companies to the country with the aim that we’ll build together the right governance and legal system, which are needed.”
The UAE statement of intent would curtail potential Western sanctions on the development of potential crypto exchanges springing up in financial centers in New York, London, Frankfurt and Tokyo and serving as conduits for sanctioned countries to use them as transactional hubs. Instead, the UAE could develop as a global, digital transactional center as Western institutions shy away under US pressure to maintain Dollar hegemony and support for its own trade finance policies – including the upholding of sanctions.
It may not all be plain sailing. The UAE’s Minister of State for Artificial Intelligence and the Digital Economy, Omar Sultan Al Olama, also present at the World Economic Forum, said that the fall of the crypto firm FTX has been a major concern. However, he added that the UAE still aspires to become a crypto hub, commenting that global crypto companies “calling the UAE home is definitely a positive thing”.
Dezan Shira & Associates maintain an office in Dubai. Financial firms wishing to keep up to date with the latest in UAE crypto regulations may contact us at dubai@dezshira.com for advisory assistance.
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