UAE Readies Regulation to Attract Global Crypto Giants and Build Mining Ecosystem
According to Bloomberg, the government of the United Arab Emirates has plans in the near future to launch the issuance of federal licenses that will allow large companies in the world-class mining sector to officially engage in activities. According to the idea of the UAE authorities, by increasing the number of VASPs (virtual asset service providers), it will be possible to become a mining center on a par with Singapore and Hong Kong. It is also planned to create its own ecosystem for cryptocurrency mining
The Securities and Commodities Authority, the local regulatory body, will soon finish work on amendments to the legislation allowing VASP to carry out its activities in the UAE.
A large company Binance, engaged in the largest volumes of cryptocurrency trading, intends to be located in the UAE. By legalizing the activities of such companies, the UAE will be a significant competitor to other crypto centers. Hong Kong and Singapore are also preparing a number of documents to regulate mining companies and their productive work.
In some parts of the United Arab Emirates, VASPs have already been legalized, they can already work by paying taxes. Already 22 companies related to cryptocurrencies have received licenses. The draft laws will also prescribe sanctions for fraud in this area. The authorities want to regulate this industry, not completely restrict its activities.