PwC launches UAE cryptocurrency report, identifies three-stage facilitative model for regulation

PwC launches UAE cryptocurrency report, identifies three-stage facilitative model for regulation

PwC Middle East launched a new report titled, ‘The UAE Virtual Assets Market’ which provides insight on cryptocurrencies and virtual assets in the UAE. The report also identifies a three-stage facilitative model for UAE regulators, to ensure transparency and compliance to promote long-term growth in the sector.

Currently the UAE’s share in the global cryptocurrency market is around $25bn transactions, and it has increased 500 per cent between July 2020 and June 2021. Regionally, the UAE ranks third by volume, behind Turkey which had $132bn in transactions volumes and close to Lebanon at $26bn.

The UAE has been harbouring an encouraging environment for the growth of its crypto industry with Dubai’s enactment of the Virtual Assets Law and establishment of the Dubai Virtual Asset​s Regulatory Authority and while the industry was largely unregulated a few years ago, recent legislative measures have shown the government’s commitment to reduce the potential financial crime risk in the nascent industry.

Mahmoud Al Salah, financial crime compliance partner at PwC Middle East said, “The crucial policy and strategic question for the UAE is how to maintain the fine balance between inviting innovation, technology and wealth generation and owning the future of crypto and blockchain versus having robust regulations