Dubai Watchdog Sounds The Alarm On Crypto Regulatory Blind Spots

11 months ago 221

As the crypto manufacture continues to summation mainstream acceptance and adoption, regulators worldwide are grappling with however to code the unsocial challenges posed by this rapidly evolving sector. While immoderate jurisdictions person embraced cryptocurrencies and blockchain exertion to beforehand innovation and economical growth, others stay skeptical and person taken a much cautious attack to regulation.

Against this backdrop, according to a Bloomberg report, the Dubai Financial Services Authority (DFSA) has voiced its concerns astir the planetary regulatory gaps successful the market.

The DFSA has warned that atrocious actors are “exploiting” these regulatory unsighted spots crossed the satellite and has called for greater coordination among regulators to forestall these activities, according to a caller Bloomberg report.

Global Regulatory “Gaps” Under Fire

According to Elisabeth Wallace, an subordinate manager astatine the DFSA, atrocious actors are exploiting these gaps to transportation retired illicit activities crossed the world.

Wallace commented astatine a virtual conference, revealing that the DFSA plans to update its rules connected crypto tokens aboriginal this year. The rules, which person been successful unit since November, use to the city’s concern hub and purpose to modulate the usage of cryptocurrencies and blockchain exertion successful the region.

Dubai has made important strides successful regulating the nascent fiscal manufacture implicit the past fewer years. In 2019, the Dubai Multi Commodities Centre (DMCC) launched a integer plus trading platform, the DMCC Crypto Centre, which aims to supply a unafraid and regulated situation for trading successful integer assets. The Dubai Multi Commodities Centre Authority regulates the platform, which oversees the licensing and regularisation of companies operating wrong the DMCC Free Zone.

The Dubai Financial Services Authority has besides regulated the city’s concern hub industry. In November 2020, the DFSA introduced a regulatory model for issuing and trading crypto assets. The model requires companies to get a licence from the DFSA and comply with a scope of regulatory requirements, including anti-money laundering (AML) and counter-terrorist financing (CTF) measures.

The DFSA’s attack to the manufacture is focused connected promoting innovation portion ensuring investors’ extortion and the fiscal system’s integrity. The regulator has stated that it is committed to creating a regulatory situation that encourages the improvement of the crypto manufacture portion minimizing the risks posed by atrocious actors.

From Oil To Crypto

Dubai is emerging as a increasing hub for the crypto industry, with respective initiatives to beforehand the adoption and improvement of cryptocurrencies and blockchain technology. The metropolis has importantly invested successful processing its fintech ecosystem, focusing connected the crypto industry.

Dubai’s authorities has supported the nascent fiscal manufacture with respective initiatives to pull crypto-related concern to the city. In summation to the DMCC Crypto Centre, which provides a regulated situation for trading successful integer assets, the Dubai authorities has besides launched the Dubai Blockchain Strategy, which aims to presumption the metropolis arsenic a planetary person successful processing blockchain technology.

The Dubai International Financial Centre (DIFC), a financial-free portion successful the city, has besides promoted the adoption and improvement of cryptocurrencies and blockchain technology. The DIFC has launched respective initiatives to enactment fintech and blockchain companies, including the DIFC Fintech Hive, a co-working abstraction for fintech startups, and the DIFC Academy, which offers grooming and acquisition programs successful fintech and blockchain.