Regulators Need to Talk More About Crypto Regulations: Dubai

Dubai is rec­om­mend­ing reg­u­la­tors around the world take a col­lab­o­ra­tive approach to close the gap in cryp­to regulations.

The Web3 indus­try oper­ates with­out any lim­i­ta­tions of geo­graph­i­cal bound­aries. While this fea­ture is a boon for glob­al inno­va­tion, bad actors can take undue advan­tage and use it to com­mit var­i­ous crimes.

Dubai Urges Regulators to Talk More

Accord­ing to Bloomberg, Dubai is call­ing for a col­lab­o­ra­tive approach from glob­al reg­u­la­tors to tack­le cryp­to crimes. As cryp­to oper­ates under var­i­ous juris­dic­tions, com­mu­ni­ca­tion between reg­u­la­tors is needed.

Elis­a­beth Wal­lace, an asso­ciate direc­tor at Dubai’s Finan­cial Ser­vice Author­i­ty, said:

“A lot of cryp­to busi­ness­es tend to oper­ate a sig­nif­i­cant num­ber of activ­i­ties with­in one umbrel­la and that real­ly con­cerns us. They are across the whole world and as reg­u­la­tors, we need to talk to each oth­er a lot more in this area because there can be quite a few gaps, and we have seen a lot of bad actors try­ing to plug some of those gaps.”

Dubai, with its aim to become a cryp­to hub, has been work­ing to draft sol­id cryp­to reg­u­la­tions. In Feb­ru­ary, the city released rule­books for cryp­to ser­vice providers, and fail­ure to com­pile with them may result in a fine of up to 500,000 AED ($136,165)

Collaborative Crypto Regulations

Mean­while, the Euro­pean Union (EU) recent­ly passed the Mar­ket in Cryp­to-Assets (MiCA) laws for cryp­to reg­u­la­tion. The 27 coun­tries of the EU will work togeth­er on imple­ment­ing MiCA leg­is­la­tion that aims at clos­ing the loop­holes in the sys­tems that allow tax avoidance.

Sim­i­lar­ly, Nir­mala Sithara­man, the Finance Min­is­ter of India, has urged the nations to devel­op a glob­al pol­i­cy approach for cryp­to regulations. 

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