Two major financial entities in the United Arab Emirates (UAE) agreed on the allowance of crypto asset trading.
The United Arab Emirates’ Security and Commodities Authority and the Dubai World Trade Centre Authority (DWTCA) signed a crypto-related agreement. According to a report this Wednesday, the regulators support the trading of crypto assets in the free zone of DWTCA.
Crypto-centric news out of Dubai continued to mount. In July 2020, the country introduced a KYC blockchain platform for customer data sharing. The move facilitated the onboarding of digital customers and data sharing between licensing authorities and financial institutions.
This year, the country announced its step into the realm of decentralized finance (DeFi). The UAE-based Sheesha Finance DeFi mutual fund managed a fundraiser of $9.4 million for liquidity generation.
Moreover Dubai is already a major hub for global activity in the Middle East. While other countries such as Bahrain saw major investments in their crypto exchange from Coinbase, Dubai has big plans nonetheless. The country made it clear that it intends to become a blockchain and DeFi innovation hub for the region. This recent move from UAE regulators supports those intentions.
Crypto Regulations Mount
While regulators in the UAE make crypto-forward regulatory moves. Other countries around the world grapple with how digital assets should be managed.
In the EU, for example, regulators approved the Union’s first Bitcoin ETF, even before the United States. Polled Europeans said they prefer the crypto regulations from individual governments rather than the general EU.
Meanwhile in Australia, the head of a major Australian crypto exchange says regulations are beneficial to the industry.
However, in the U.S. the situation regarding crypto regulations has the community on edge. Earlier this summer the U.S. Senate passed a bipartisan tax bill which broadens the term for a “broker”. This small clause could have huge effects on how everyone in the crypto space functions and reports to the IRS. After that bill passed, House democrats added an additional tax provision which closes a loophole popular among crypto investors.
Most recently, SEC Chairman Gary Gensler shared his thoughts for a detailed regulatory roadmap for the crypto industry. U.S. regulators intend for some sort of regulatory action towards the crypto space by the end of September.
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