Dubai Presses for Crypto Companies to Set Up Shop

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Dubai's Virtual Assets Regulatory Authority has promised a crypto framework before year end, sources say. lavender_au reports

the gray list of the Paris-based financial watchdog, the Financial Action Task Force. While it beefs up its anti-money laundering regime, it’s under increased monitoring.“How can you be optimistic about something you haven’t read?” Irina Heaver, Partner of Blockchain and Digital Assets at Keystone Law Dubai said. Before she sees VARA’s regulation and its applications, she’s establishing her clients elsewhere, she said.

The regulator is actively courting companies. James Bernard, founding partner of consultancy JBLV and founding member of the Dubai Global Blockchain Council told CoinDesk that VARA is “inviting some of the top companies around the world to be part of its MVP,” he said, whether that be exchanges, decentralized finance or non-fungible token projects. “VARA will start discussion groups that will look to create the best practice in regulations of oversight for each of those verticals,” Bernard said.

“They really want to hear what the issues are and how they can be solved,” Byun said. For him, “the big elephant in the room for the entire crypto exchanges industry is the“Not all [virtual asset service providers] are equal,” Byun said. He said that centralized exchanges need to be careful about who they are sending information to. In his view, regulators could take a more proactive stance by starting locally and having exchanges send information between each other.

Banks may be waiting for the central bank to clearly signal that the crypto industry is above-board, Tabbaa said.“It is a new industry coming into the region,” said Balsam Danhach, head of operations for FTX MENA. “It’s not regulated. The appetite of a bank to take on that risk is very low.” “Any entrepreneur in the region will comment that banking here is bad,” Heaver said. She explained that banking in Dubai is set up for multinationals. The banks are for-profit. They’re not making billions on letters of credit or trade financing arrangements from entrepreneurs.

 

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lavender_au Great article lavender_au Thank you for featuring me, a risk averse lawyer :)

Good luck crypto bros 😅 There's no rule of law in UAE. The government can seize your assets domestically; and other countries will extradite you to there. FAFO

lavender_au Why they aren't talking about this

lavender_au Why they aren't talking about this!!

lavender_au That's good to hear

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