The crypto industry is being gradually accepted and adopted worldwide, but regulators are still working out how to deal with the new challenges presented by this fast-growing sector. While some countries embrace cryptocurrencies and blockchain technology for innovation and economic growth, others remain hesitant about regulation.
Bloomberg reports that the Dubai Financial Services Authority (DFSA) has considerable reservations about the issue: “Global Regulatory Gaps Under Fire.”
The DFSA has cautioned that global regulatory blind spots in the market are being exploited by unscrupulous actors and called for more collaboration among regulators to put a stop to these activities.
Global Regulatory “Gaps” Under Fire
Elisabeth Wallace, an associate director of the DFSA, suggested that these gaps are used globally for unlawful purposes. At a virtual conference, Wallace explained that DFSA aims to update its rules on digital tokens later this year.
The DFSA’s regulatory framework requires companies to comply with a series of measures like anti-money laundering (AML) and counter-terrorist financing (CTF) in addition to obtaining a license from the governing body. The authority’s approach prioritizes innovation, investor protection, and the integrity of the financial system, while also trying to reduce risks associated with malicious actors.
From Oil To Crypto
Dubai is emerging as a significant hub for the crypto industry, with several initiatives to drive cryptocurrency and blockchain technology adoption and development. Dubai has attracted significant investment in developing its fintech ecosystem, focusing particularly on the crypto industry.
To incentivize crypto-related investment and make Dubai a global leader in developing blockchain technology, the Dubai government launched several initiatives, including the DMCC Crypto Center, which provides a regulated atmosphere for trading digital assets and the Dubai Blockchain Strategy. They have also launched DIFC Fintech Hive, a co-working space for fintech start-ups, and DIFC Academy that offers training and education programs in fintech and blockchain.
Featured image from Unsplash, chart from TradingView.com
