Cryptocurrency and blockchain adoption in the United Arabs Emirate seems to be on the rise as the financial authorities in the country recently hosted a crypto asset and fintech forum. According to a report by a local media outlet, Emirates News Agency, the Abu Dhabi Global Market (ADGM) and the United Arab Emirates Banks Federation (UBF) hosted the fintech and crypto asset forum in the country with the aim of promoting them and also seek a better understanding of how they work.
Financial authorities share their regulatory objectives
The event which was held in ADGM in partnership with the UBF Compliance Committee was designed to help bring together specialist in the crypto and fintech sector so as to discuss the challenges facing the industry while also looking at the opportunities available to explore.
The ADGM at the start of the meeting shared its regulatory objectives with the attendees, with the main focus being on cryptocurrency regulations and surveillance tools. However, the topics discussed during the event centered on ADGM’s crypto assets regulations and supervisory approach. It also covered other areas such as how banks and financial regulators can work together to put in place procedures to help reduce the risks associated with crypto assets.
According to the report, ADGM stated that the emergence of cryptocurrencies is currently changing the financial service landscape. To help boost the emerging market, established financial institutions such as banks, and financial regulators have a crucial role to play by monitoring the developments and ensure that financial services continue to operate in a robust manner.
The chairman of UAE Banks Federation, Abdul Aziz Al-Ghurair, at the event stated that “UBF is a strong advocate of the innovation that is disrupting the UAE financial services industry. We strongly believe in the importance of collaboration to facilitate this transformation and ensure it takes place seamlessly and successfully. Given the rapid emergence of new FinTech such as cryptocurrencies and other crypto assets, it is essential that we develop frameworks and regulations that govern these technologies and developments.”
Al-Ghurair added that the United Arabs Emirate is seeking to become one of the leading international hubs for fintech and keeping up with the emerging technologies is one of the ways to help them achieve that.
Richard Teng, the CEO of ADGM expressed his optimism regarding the partnership as he believes this will pave the way for them to address the challenges facing the emerging market and how best to explore the opportunities it has to present. The UBF is currently a non-profit body that represents 50 member banks in the UAE.
Crypto adoption in UAE on the rise
The adoption of cryptocurrencies in the UAE seems to be on the rise. Early last month, the country’s ministry of finance announced that it is looking to discuss the impact made by blockchain tech and crypto asset in their economy at the upcoming 7th World Government Summit. The ministry will focus on global digital trends and how the UAE is making progress in those fields.
In January, the authorities in Saudi Arabia and the UAE partnered to work on the creation of a cryptocurrency. The primary objective of the project is to protect consumer interest, create standards for the new technology, and study the cybersecurity risks involved in cryptocurrencies. Last month, six commercial banks from the two countries joined a cryptocurrency project with the aim of helping authorities better understand the industry.
Crypto assets are beginning to get favorable outlook from regulators all over the world. Despite the initial scrutiny on ICOs and exchanges, regulators are now trying to understand the industry and roll out more favorable laws.