The central bank will carefully consider the legalization of bitcoin, plans to launch the appropriate regulatory framework
After Philippines and Chinese government took the supervision of digital currency footsteps, the government of the United Arab Emirates (UAE) and the central bank has also launched the action plan in the near future for bitcoin digital currency exchange operations and provide a clear regulatory framework.
In January 1, 2017, the UAE central bank issued a report entitled “the regulatory framework” value storage and electronic payment system files, the file referred to the market leading digital payment and financial technology (fintech) technology.
Bitcoin in the United Arab Emirates legal?
It is reported that the regulatory documents in section D.7.3, explicitly mentioned prohibit the use of virtual currency, and does not recognize the digital currency transactions. The paper caused a controversy in the United Arab Emirates bitcoin and financial technology industry, many leading enterprises have asked the UAE central bank will consider whether to recognize bitcoin and other digital currency exists.
In this regard, the UAE central bank governor MubarakRashedKhamisAlMansouri announced that this regulatory document does not actually contain digital currency (bitcoin), digital currency companies and block chain technology.
AlMansouri further pointed out that the UAE central bank is contemplating the legalization of bitcoin, launched the necessary regulatory framework for commercial and trading.
At the end of 2016, the Dubai government also stressed that the government officials and political leaders will come together to discuss the potential of bitcoin and block chain technology in the financial field, especially in the financial industry and the ecological system of the United Arab emirates.
The government said in a statement:
“The highest legislative council of the emirate of Dubai (SLC) has announced that it will discuss encryption currency at a seminar (bitcoin) status of the relevant legislation and the legal framework and the future. This seminar, Legislative Council and Dubai electronic security center (DESC) cooperation, the meeting will be held in November 20, 2016, local and federal government agencies will attend the high-level.”
Similar to the Philippines central bank practice
Not long ago, Philippines’s central bank admitted in a document published in bitcoin as the legal status of network payment and remittance.
The UAE government officials and regulators also saw a huge potential business, bitcoin exchange and market. The UAE central bank, and the financial industry in the United Arab Emirates and other important figures, they have been announced in many public occasions, the government will publish bitcoin regulatory framework for a nationwide, to ensure that the digital money market can become prosperous in earnest under the government’s supervision.
This method is similar to the Chinese government strategy that allocate more resources to the supervision of bitcoin, with efficient and practical regulations to ensure bitcoin users are still trading than in compliance of the trading market, rather than the black market or underground market.
As of now, bitcoin is regarded in many countries as a commodity, including australia. In the near future, the use of bitcoin in the UAE will become legal, the government will soon release the corresponding regulations.