THELOGICALINDIAN - The Central Bank in the United Arab Emirates UAE issued the Regulatory Framework for Stored Values and Electronic Payment Systems on January 1 which appeared to ban all basic currencies However the Banks Governor afresh adapted this delusion acknowledging that basic currencies including bitcoin are not banned
Also read: Dubai’s Role With Blockchain Technology’s Success Story
Bitcoin is not Banned
The UAE Central Bank defines ‘virtual currency’ as “any blazon of agenda assemblage acclimated as a average of exchange, a assemblage of account, or a anatomy of stored value”. The contempo Regulatory Framework states that basic currencies are not accustomed by these regulations, abacus that:
This account acquired abounding bodies to achieve that the Central Bank has banned all basic currencies. However, Gulf News afresh acquired clarification from the Central Bank acknowledging that basic currencies were not banned. Mubarak Rashid Khamis Al Mansouri, Governor of the Central Bank, told the publication:
The Governor additionally appear that basic currencies are “under analysis by the Central Bank and new regulations will be issued as appropriate.” He emphasized that the Regulation Framework’s amount cold is “to facilitate able-bodied acceptance of agenda payments beyond the UAE”.
A Closer Look at the Regulations
The Regulatory Framework is still cryptic on what absolutely is included.
“Looking at the accordant diction and its area in the new Regulations (section D – 
Common Regulatory Requirements for all PSPs)”, Brian Meenagh, Partner at the Dubai-based Latham & Watkins law firm, explained to Bitcoin.com that “it appears that the absorbed of the diction is to prohibit acquittal account providers accountant beneath the new Regulations from ambidextrous in basic currencies at this point in time rather than prohibit basic currencies throughout the UAE”.
These regulations would apparently “give some abundance to businesses that amusement bitcoin as a article that bodies can trade” such as exchanges, Meenagh said. However, “businesses that amusement bitcoin as a bill that can be acclimated for retail affairs or bill remittances should still advance carefully and seek added advice as to whether or not they are afflicted (or prohibited) by the Regulations”, he added, citation the new regulations’ analogue of acquittal account provider.
Other UAE Bitcoin Regulations
While some countries, such as Japan, accede Bitcoin as a adjustment of payment, others, like the U.S., accede Bitcoin an asset. For the UAE, Meenagh believes that “until added advice is issued, the new Regulations may advance to a abeyance in efforts to advance Bitcoin as a adjustment of payment”.
However, based on the Governor’s clarifications, “we would not apprehend the Regulations to change any behavior with account to the operation and use of bitcoin exchanges in the UAE”, he clarified.
Nonetheless, basic currencies are “being considered” by both the UAE Central Bank and the Dubai Supreme Legislation Committee, Meenagh acicular out.
Last November, the Dubai Supreme Legislation Committee hosted a workshop on ‘the present and approaching of aldermanic and acknowledged frameworks of Bitcoin’. Held amidst a “high-level appearance of bounded and federal government entities,” the purpose of the allocution was to advice accompany the UAE up to acceleration on the challenges that bitcoin and added agenda currencies present.
“The appellation ‘virtual currency’ is almost new, not alone in the UAE and the arena but additionally globally. Therefore, there is an burning charge to advance acquaintance about ‘Bitcoin’”, said H.E. Ahmad bin Meshar Al Muhairi, Secretary General of The Supreme Legislation Committee in the Emirate of Dubai. H.E. He additionally acclaimed that:
How do you anticipate the UAE will amusement Bitcoin? Let us apperceive in the comments area below.
Images address of Shutterstock, Latham & Watkins, UAE Central Bank
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