Crypto to Play ‘Major Role’ in UAE Trade: Foreign Trade Minister

Thani Al-Zeyoudi, minister of state for international trade in the United Arab Emirates, has stated that the government needs to implement the appropriate regulation to encourage continued growth in the cryptocurrency industry because it has attracted a lot of talent in this area.

Thani Al-Zeyoudi, minister of state for foreign trade in the United Arab Emirates, predicts that cryptocurrency will play a “significant role” in the country’s international trade going forward.

When Al-Zeyoudi spoke with Bloomberg on January 20 in Davos, Switzerland, where world leaders are presently meeting for the 2023 World Economic Forum, he updated the audience on a number of developments concerning the United Arab Emirates’ economic partnerships and policies for the upcoming year.

He went on to say, “the most essential thing is that we ensure global governance when it comes to cryptocurrencies and crypto enterprises,” emphasising the importance of regulating the crypto industry.

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 is needed,” Al-Zeyoudi suggested, indicating that the UAE’s crypto regulatory regime will be geared toward making the Gulf country a hub with crypto-friendly policies that also have sufficient protections in place.

Just a week prior to Al-comments, Zeyoudi’s the UAE Cabinet had passed new rule that effectively ensures that firms engaging in crypto operations must get a licence and approval from the Virtual Asset Regulatory Authority (VARA).

Companies who violate this new law might be fined up to $2.7 million. In September, the financial regulator of Abu Dhabi’s Global Market free economic zone announced “Guiding Principles” for digital asset regulation and supervision.

The principles define an open attitude toward cryptocurrencies while also promising to adhere to international norms in AML, CFT, and support for financial sanctions.

Omar Sultan Al Olama, minister of state for artificial intelligence and the digital economy in the United Arab Emirates, also participated in a crypto-focused panel at the World Economic Forum on January 19.

Although the FTX scandal has caused great alarm, Al Olama assured the audience that the United Arab Emirates still plans to act as a hub.

He viewed favourably the fact that many cryptocurrency firms now call the United Arab Emirates home.

The minister further disassociated the UAE from claims that locales like Dubai are popular refuges for disgraced crypto personalities, stating that “bad actors don’t have a nationality and don’t have a destination.”

However, he emphasised that nations should cooperate to prevent criminals from fleeing the country.

All around you, you will find them. The Bahamas, New York, and London all have them, and “what we need to do as governments is to work together, with the industry as well, to ensure that if someone does something wrong, he can’t travel from one location to the other,” he said.