UAE to issue licenses for crypto service providers soon

Countries around the world are confused about cryptocurrency. Many countries are thinking of regulating it, while the stand of some countries is very clear. These countries are looking at cryptocurrency as the future and are taking steps to adopt it. The United Arab Emirates (UAE) is preparing to issue federal licenses for virtual assets service providers by the end of this quarter to woo crypto companies. Bloomberg has given this information quoting a government official.

the officer Told That the Securities and Commodities Authority (SCA) is in the final stages of establishing a framework to allow VASPs to be installed in stores in the country.

According to Bloomberg, the United Arab Emirates will adopt a hybrid approach in this matter after considering the views of the US, UK and Singapore. According to this, the responsibility of the SCA and the Central Bank of the country will be with the regulation. At the same time, the Regional Financial Centers will deal with the day-to-day work related to the license. The report states that the government wants to create a conducive environment for crypto mining.

The UAE government said in December last year that it would create a friendly regulated zone for crypto service providers at the World Trade Center in Dubai. The very next day, Binance, the world’s largest crypto exchange, signed an agreement with Trade Center.

It is worth noting that laws are being brought in the UAE in the interest of crypto investors. Strong punishment is guaranteed for crypto scammers targeting investors. The new rules have come into effect from January 2, 2022. Cryptocurrency-related fraud will attract up to five years in prison and a fine of up to 1 million AED (approximately Rs 2 crore). UAE President Sheikh Khalifa bin Zayed Al Nahyan announced a series of legal reforms last month. These laws are being brought with the aim of reducing the dangers of financial fraud.

Under the new rules, there will be legal consequences for posting misleading advertisements or incorrect data about any product online. Similar punishments also apply to those promoting unrecognized cryptocurrencies in the country.
The main reason for the implementation of the new rules is also that crypto frauds are increasing around the world. In the year 2020, there were total crypto crimes of about $ 0.52 billion (about Rs 79,194 crore) all over the world.