The United Arab Emirates (UAE) is seeking to undertake cryptocurrency in a ‘major role’ in its buying and selling insurance policies, based on a report by Bloomberg.
Speaking with Bloomberg Television in Davos, Switzerland – the place the World Economic Forum is presently being held – UAE’s minister of state for overseas commerce, Thani Al-Zeyoudi, made some constructive statements on the potential function of cryptocurrency within the financial system of the gulf nation.
“Crypto will play a major role for UAE trade going forward,” mentioned Al-Zeyoudi. For years now, the UAE authorities has been engaged on reworking the nation into a worldwide crypto hub, primarily by implementing crypto-friendly insurance policies with the objective of attracting the large weapons within the $1 trillion business.
Al-Zeyoudi mentioned this mission with Bloomberg stating UAE’s plan of a collaborative effort with these firms in creating the required authorized framework for the growth of cryptocurrency operations throughout the Middle Eastern state.
“The most important thing is that we ensure global governance when it comes to cryptocurrencies and crypto companies,” he mentioned.
“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,” he informed Bloomberg in his interview on Friday.
UAE Expresses Support For Crypto Amid Market Woes
Just a day earlier than Al-Zeyoudi’s interview, the UAE’s minister for Artificial Intelligence, Digital Economy, and Remote Work Application Omar Sultan Al Olama, who can also be representing the Emirates on the World Economic Forum, stated that the nation remained dedicated to its objective of turning into the world’s cryptocurrency hub whatever the latest market crash.
While taking part as a speaker in a panel dialogue titled “Finding The Right Balance For Crypto,” Sultan Al Olama made these claims whereas saying that crypto firms already referring to the UAE as dwelling was a constructive factor to notice.
Last November, the crypto market recorded heavy losses following the surprising collapse of the FTX change. Although the market continues to be removed from a full restoration, there have been regular good points in the previous few weeks.
For instance, Bitcoin, the crypto market chief and the world’s largest digital asset, has recorded a rise of 37.40% in its worth for the reason that starting of 2023. According to data from CoinMarketCap, BTC is buying and selling at $22,621.05 per unit with a market cap of $435.9 billion.
BTC Trading at $22712.00 | Source: BTCUSD chart on Tradingview.com
Could UAE Become The Crypto Capital Of The World?
At a number of instances in the previous few years, the Middle Eastern nation has said its need to change into the worldwide central hub for cryptocurrency operations. To this finish, the nation’s authorities has repeatedly launched a number of insurance policies aimed toward encouraging the actions of blockchain-based companies within the nation.
So far, these efforts have been an enormous success, with over 400 lively crypto companies presently working within the UAE. Furthermore, resulting from a pleasant regulatory framework, a number of exchanges, together with Binance, OKX, BitOasis, and many others., have all acquired licenses to function within the nation.
Dubai, the nation’s industrial hub, has additionally performed host to distinguished cryptocurrency festivals, together with the World Blockchain Summit, Crypto Expo Dubai, CryptoFest, and many others.
Clearly, the United Arab Emirates is on the appropriate trajectory to realize its lofty objective. Although the nation nonetheless faces a number of challenges, together with the fixed threat of fraud and rising competitors from different nations with comparable targets, (e.g., Bahrain, Qatar, Egypt, and many others.), the UAE is presently the main contender to change into the crypto capital of the world.
Featured Image: Analytics Insight, Chart from Tradingview.com
