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Launch of Crypto Currency Jointly by UAE and Saudi : The UAE has been anti-crypto in the beginning. However, now it is one of the best countries for cryptocurrency projects in the world. An advantage of working in UAE is that there are no taxes imposed on cryptocurrency projects.
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UAE and KSA has jointly signed a bilateral agreement to initiate the development of a common cross-border digital currency The cross-border digital currency will be strictly targeted for banks at an experimental phase with the aim of better understanding the implications of Blockchain technology and facilitating cross-border payments.
The important details of the same were released a little later jointly by the United Arab Emirates Central Bank (UAECB) and the Saudi Arabian Monetary Authority (SAMA).
This is a strategic move on part of UAE because the current trend is that the blockchain companies are flocking towards the Middle East to tap the market, expecting a high market growth.
The name of the joint digital currency is ‘Aber’. The scope of the same is limited for the time being and it focuses on financial settlements on a probationary basis between the banks of both the countries on an exclusive basis. However, the official date for the launch of the same has not been released yet.
The FSRA (Financial Services Regulatory Authority) of Abu Dhabi Global Market (ADGM) is the main authority which regulates the cryptocurrency and blockchain projects in UAE. Others are SCA (Securities and Commodities Authority) and the DFSA (Dubai Financial Services Authority – DIFC) in a limited capacity.
As of now, there is no federal law governing the crypto assets in the UAE. SCA has recently passed a draft regulation governing the crypto assets. It is the FSRA of ADGM which has issued the “Regulation of Crypto Asset Activities in ADGM”, which is the only guide available.
To deal in crypto, there is a mandatory requirement to acquire the an OCAB (Operating a Crypto Asset Business) license from FSRA or the requisite license from DSFA. This license will allow the company to provide crypto services, such as providing storage facilities to the people, crypto asset exchange platforms etc.
As on date, FSRA has given in-principle approval to three crypto asset licenses out of seven.
The Dubai Multi Commodities Centre (DMCC) in Dubai grants Crypto trading license. However, it doesn’t allow launching an ICO or registering a crypto exchange. DMCC has also granted license to a major company to act as ‘deep cold storage’ for crypto assets thereby allowing customers to store their Bitcoins and other crypto assets with the company in DMCC vault.
Cryptocurrencies are on the rise in the global market and ignoring the same will not be beneficial to the economy and the market. The UAE should dwell into this soon and come up with laws and regulations for the same. Blackswan BSS can help you in step by step to Business Setup.
Source https://goodwinslaw.ae/lexwins/launch-of-crypto-currency-jointly-by-uae-and-saudi/
Originally posted 2021-09-29 05:58:24.