January 21, 2023

Minister: Crypto Will Play Major Role in Boosting UAE’s Global Trade

Dr-Thani-bin-Ahmed-Al-Zeyoudi

Dr-Thani-bin-Ahmed-Al-Zeyoudi

UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi stressed the importance of the crypto industry for his country, saying it will play a major role in pushing the UAE’s global trade forward, Coin Telegraph reported.

Zeyoudi’s remarks came during his interview with Bloomberg on the sidelines of the World Economic Forum in Davos as he was talking about developments of the UAE’s trade partnerships and policies in 2023.

Zeyoudi underlined that the UAE is now regulating its crypto environment given that it targets to be a hub with crypto-friendly policies, pointing to the necessity of ensuring global governance for the operation of crypto companies and cryptocurrencies.

“We started attracting some of the companies to the country with the aim that we’ll build together the right governance and legal system, which are needed,” the UAE minister pointed out.

Zeyoudi’s statements came a week after the UAE Cabinet introduced a new regulation under which firms or entities engaging in crypto activities should get a license and approval from the Virtual Asset Regulatory Authority (VARA).

The companies which will violate the new regulation will be forced to pay fines of up to $2.7 million. The regulation is added to the guiding principles published by the financial regulator of Abu Dhabi’s Global Market free economic zone in September.

Moreover, in Davos, UAE Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications Omar bin Sultan Al Olama said his country was concerned over the collapse of FTX, however, it wants to be a crypto hub despite the tribulation.

Olama pointed out that the crypto companies’ description of the UAE as a home is a positive thing.

Earlier, Crypto Oasis said more than 1,650 organizations were identified as part of the UAE blockchain ecosystem by the end of 2022.

In its Ecosystem Report 2022, the MENA-focused blockchain ecosystem said this number exceeded the 1,500 forecasts for 2022, as the organizations are growing more than expected previously.

Crypto Oasis monitored a 13.6% growth in the UAE blockchain ecosystem, a matter which proves the UAE’s keenness to facilitate blockchain-related companies securing licenses and operating in the country. In addition, more than half (68%) of the 1,650 organizations (1,126 organizations) are native ones, while 32% of them (525 organizations) are not native.

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