The UAE central bank clarified that the new regulations do not prohibit virtual currency

The UAE central bank clarified that the new regulations do not prohibit virtual currency


The UAE “Gulf News” reported on February 1st, the Central Bank of the United Arab Emirates clarification effect in January 1, 2017, the new regulations do not prohibit bitcoin and other virtual currencies.

In a statement sent to the Gulf News, central bank governor MubarakRashidKhamisAlMansouri said that the new release of the stored value and electronic payment system regulatory framework (RegulatoryFrameworkforStoredValuesandElectronicPaymentSystems) regulations do not cover the contents of virtual currency. Among them, the virtual currency is defined as a medium of exchange for all digital unit, unit of account or deposit form. Therefore, the law does not apply to bitcoin and other encryption currency, currency, and the underlying technology chain block. Mansouri added in a statement, in view of the virtual currency, the central bank is currently being carried out on the review, and will depend on the situation issued new regulations.

Under the new rules, because contain “all the virtual currency (and trade) is prohibited”, industry lawyers and investors initially thought, which means that the UAE will ban the virtual currency.

The United Arab Emirates first digital currency exchange company BitOasis CEO and co-founder of OlaDoudin, the central bank’s clarification is encouraging news. Doudin believes that the central bank to support the financial innovation direction is optimistic. But the lawyer Li SallySfeir-Tait warned that, from a legal point of view, in the law before the amendment, the clarification and the law does not have the same legal effect. But he hopes that, before this, the central bank will not take any action in virtual currency transactions.

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