UAE Business: PwC 3-stage model for cryptocurrency regulation in the UAE – Gulf Digital News

UAE Business: PwC 3-stage model for cryptocurrency regulation in the UAE – Gulf Digital News

Clear regulations, industry self-regulation and international coordination and cooperation will ensure transparency and compliance in the fast-paced UAE cryptocurrency sector with current transactions worth $25 billion.

Crypto deals have grown 500% between July 2020 and June 2021. Regionally, the UAE ranks third by volume, behind Turkey which had $132 billion in transactions volumes and close to Lebanon at $26 billion, said PwC Middle East in a new report titled, The UAE Virtual Assets Market.

The report also identifies a three-stage facilitative model for UAE regulators to follow to ensure that there is enough transparency and compliance.

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 Assets Regulatory Authority (VARA), 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.

Clear regulations

This crucial building block is clear and unambiguous legislation, backed by law enforcement. The UAE requires a comprehensive, all-encompassing framework that covers all Anti-Money Laundering (AML) / Combatting the Financing of Terrorism (CFT) and financial crime aspects. Niche regulation on areas such as Decentralised