United Arab Emirates (UAE) plans to complete the preparations for issuing licenses for crypto asset providers by amending the legislation before the end of the first quarter of this year. The UAE also wants to have a say in the cryptocurrency mining industry.
A government official said the Securities and Commodities Authority (SCA) is in the final stages of a legislative change that will allow crypto-asset providers to trade in the region, Bloomberg reported. In addition, the official revealed their intention to create a center of attraction in this area by inviting major crypto exchanges to the region.
Prior to this development, a cooperation agreement was signed between the cryptocurrency exchange Binance and the Dubai World Trade Center towards the end of 2021. In this context, Binance, the world's largest cryptocurrency exchange by transaction volume, is one of the companies that want to establish a center in the region.
With its latest initiative, the UAE wants to compete with crypto hubs like Hong Kong and Singapore. On the other hand, regulatory studies continue in these countries to increase activities in a safe and transparent environment.
It is known that there are 22 crypto companies that have been licensed by fulfilling the conditions set in Dubai, which is located in United Arab Emirates region. According to this approach, instead of banning cryptocurrencies, the region seems to have chosen to take advantage of this industry by preventing its use in illegal activities and by introducing anti-money laundering standards.
There is also cryptocurrency mining for the UAE government's plans regarding the crypto industry. In addition to attracting crypto companies to the region, the regional government is allegedly intending to create an ecosystem for cryptocurrency mining. The government official, who did not want to be named, told Bloomberg that the crypto industry as a whole will be highly regulated.