UpdatesMay 10, 2023

The United Arab Emirates introduces transparent legal regulations regarding cryptocurrencies

The CEO of the popular American digital currency exchange praised the UAE for its modern approach to cryptography.

Brian Armstrong, who heads the Coinbase platform, strongly praised the United Arab Emirates. In the opinion of the American entrepreneur, the United Arab Emirates is thinking about the future of the crypto asset industry and blockchain technology. He emphasized that the country has created a comprehensive, clear set of regulations that is friendly to cryptocurrency companies and provides strong protection for users. He added that he was very happy with his recent visit to the UAE related to the Dubai Fintech Summit event.

UAE introduces regulatory clarity for cryptocurrencies

After the well-known American digital asset exchange Coinbase announced the launch of the latest version of the global platform for trading cryptocurrency derivatives, the company's key managers met with leaders in the cryptocurrency sector from an Arab state located in the Middle East.

“The United Arab Emirates deserves the highest praise for its pro-growth mindset in crypto and blockchain development,” said Brian Armstrong. The American businessman added that he was extremely satisfied with his visit to this country so far. The businessman also recognized that the state led to the creation of a clear and fair set of rules that is business-friendly and strongly protects customers using crypto platforms.

Moreover, the CEO of Coinbase attended the Dubai Fintech Summit, an event sponsored by the UAE that is dedicated to bringing together local regulators and participants in the wider digital currency community. The two largest cities in the United Arab Emirates, Dubai and Abu Dhabi, have become significant global hubs for companies in the digital asset sector. This has been made possible primarily by the Dubai International Financial Center (DIFC) and Abu Dhabi Global Markets (ADGM).

Both of the above-mentioned cities, which are also the capitals of the respective Emirates, have licensed digital currency exchanges such as Binance or Bybit, as well as many other entities in the industry.

Conflict with the SEC

While Coinbase's CEO recently reassured shareholders that the company was 100% committed to the US market, there is currently an issue of regulatory uncertainty in the US that is hampering business. This is evidenced, for example, by the different stance on individual digital currencies adopted by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It is worth adding that for the first of these agencies, all digital currencies except Bitcoin (BTC) are securities, the second one claims that Ethereum (ETH) or Litecoin (LTC) are a type of commodity.

Moreover, some time ago, the SEC sent a notice to Coinbase, suggesting that the platform is in the business of selling unregistered securities in the form of cryptocurrencies. In response to this harsh attack, the exchange urged the US agency to take absolutely no enforcement action against the company for its own sake. According to representatives of Coinbase, the SEC is doing far too much damage with its actions, and what's more, it may lead other companies to disregard compliance regulations.