United Arab Emirates’ Securities and Commodities Authority (SCA) has drafted a resolution that would lead to the regulation of crypto assets in the Arab country. This came at a time that focus has been on China, United States and Japan considered the focus when the topic is cryptocurrency and blockchian.
UAE is proving to be the foremost country in the Middle East as far as the technology is concerned even as a few countries in the region have continued to resist it. For example, Iraq and Kuwait have been among the most restrictive but Emirates has traditionally been regarded as one of the most progressive countries in the region.
It is no surprise that the SCA is leading the campaign for the regulation of crypto assets and a closer look at the potentials of the blockchain technology in the country. The country has led in the real estate and oil sector in the Middle East and is likely moving to leverage the new technology.
Sukhi Jutla, a blockchain author who has been recognized by Financial Times, stated that by drafting this resolution, the UAE is sending a positive sign to other countries in the region and globally:
“They are signaling that they are open to exploring this area and by creating guidelines they are giving more reassurance, confidence and stability to businesses owners who may want to enter this field.”
It is likely that other countries in the region would start moving in the same direction, which could just be what the industry needs at this time to remove some of the restrictions it is facing. Jutla continued by saying:
“The UAE has been smart enough to understand that this innovation will grow in years to come and they don’t want to miss it. I wouldn’t be surprised if the UAE becomes the leading nation in this space just as they did with the oil and property space.”
Turkey, Iran and Israel are already investigating the advantages of blockchain technology although none has enacted definite legislation regarding it. The United Arab Emirate, like others already hosts some blockchain initiatives that would benefit from the legislation.