UAE’s crypto regulators must push for greater coordination: PwC

UAE’s crypto regulators must push for greater coordination: PwC

Dubai: When it comes to regulating cryptocurrencies and virtual assets, UAE regulators need to have ‘unambiguous’ legislation and rely on the expertise of industry players, said PwC Middle East in a report on Tuesday. The consultancy emphasized the need for a ‘clear’ regulatory framework backed by law enforcement. PwC said the rules should cover anti-money laundering (AML), counter financing of terrorists (CFT), and other financial crimes. “Niche regulation on areas like DeFi (decentralized finance) and NFTs (non-fungible tokens) is also essential given the luxury real estate and arts market in the UAE, as this will not only help eliminate ML and TF risks but also help to expand the market,” said the report. UAE’s share in the global crypto market is around $25 billion 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 $132 billion in transaction volumes, and close to Lebanon at $26 billion. Going forward, regulators will need to rely more on industry experts to formulate policies. “By collaborating with industry experts, fintechs, crypto firms, academics, consumer interest bodies, and subject matter experts, regulators can reduce their monitoring and enforcement costs and