UAE’s Capital demands effort on International Cryptocurrency Regulations

The need of regulating the cryptocurrency has made another hype in the market. The volatility and uncertainties with the crypto and blockchain technology and the recent rise in the criminal activities with the currency have raised the concern of the authorities. The officials are willing to put the brains into use so there are proper regulations that will enable the cryptocurrencies to grow in the right direction without any manipulation.

The head of the financial regulator of the United Arab Emirates (UAE) capital Abu Dhabi has the similar vision and he wishes it acts on the global scale. As reported by the local daily newspaper The National, the head of the financial regulators, Richard Teng said, Abu Dhabi wants “proper” international regulation of cryptocurrency.

Richard Teng is the head of the Financial Services Regulatory Authority of the Abu Dhabi Global Market (ADGM) believes that there is a strong need for the regulations as the loss and theft of cryptocurrency negatively impact its image as an asset.

According to Teng,

“This space needs to be properly regulated, otherwise there is the risk of financial crime,” noting:

“Every time a coin gets stolen or lost, it affects the confidence in this asset class.”

The comment from the official is latest worldwide as there have been regulators around the world who have felt the similar need of the regulations. Also, a formal regulation at a nationwide level in the UAE is to take place with fintech and Initial Coin Offerings (ICO) are on the prime focus.

The officials from the senior law enforcement along with the police chief of Dubai stated that digital currency would “soon replace” traditional cash and felt the need for the central bank to issue a national cryptocurrency.

AGDM has been engaged with the crypto market over a long period and has also published guidelines last year. Teng added to his comments in the interview report,

“We are confident that our comprehensive regime — which we have shared with global regulators can address these risks and bring greater confidence into this asset class.”