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Abu Dhabi Creates Committee to Oversee Crypto Regulation

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Abu Dhabi Creates Committee to Oversee Crypto Regulation
  • According to reports, the committee would be made up of “Abu Dhabi Global Market, SCA, state wealth funds ADQ and Mubadala, Abu Dhabi Investment Office and professional services firm Mazars.” .
  • Six months ago, the Financial Action Task Force (FATF) placed the United Arab Emirates (UAE) on a watch list for money laundering concerns.

Abu Dhabi has become one of the known crypto hubs endorsing the licensing of several branches of digital asset companies. Recently, he formed a government body, “The Abu Dhabi Blockchain and Virtual Assets Committee (ADBVAC)” to oversee crypto regulation and promote the virtual asset industry in its jurisdiction.

The city hosted an inaugural meeting organized by ADBVAC and chaired by Mohamed Ali Al Shorafa, Chairman of the Abu Dhabi Department of Economic Development and Chairman of the Securities and Commodities Authority (SCA). As part of the discussion topics, the committee seeks to introduce a regulatory framework to build a safe, robust and transparent ecosystem for digital assets. Additionally, it seeks to ensure that all crypto businesses under its jurisdiction comply with anti-money laundering and anti-terrorist financing rules.

According to reports, the committee would be made up of “Abu Dhabi Global Market, SCA, state wealth funds ADQ and Mubadala, Abu Dhabi Investment Office and professional services firm Mazars.” .

The committee was mandated to support the exchange of information, encourage best practices for participants, and ensure that the blockchain and virtual asset space in the city is competitive.

The UAE’s ongoing effort to control the virtual asset space

Six months ago, the Financial Action Task Force (FATF) placed the United Arab Emirates (UNITED ARAB EMIRATES) on a money laundering watch list. In response, Shorafa believes the body would help offset any known expected risks.

The committee brings together all relevant stakeholders to build a strong, credible and comprehensive regulatory and business ecosystem that addresses key risks and governance issues, such as AML/CFT, investor protection, technology governance and risk. custody, in order to promote the blockchain. and virtual assets.

The UAE has also created the Dubai Virtual Asset Regulatory Authority (VARA) joining Singapore, the United States, the United Kingdom and El Salvador in introducing crypto laws. Interestingly, VARA has taken a dramatic step into the Metaverse by establishing their Metaverse HQ in The Sandbox.

VARA was created in collaboration with the Central Bank of the United Arab Emirates and the Securities and Commodities Authority, to support services related to digital assets. This includes providing licensing and enforcing regulations of companies operating in the virtual asset industry. He is also responsible for supervising

Developing strategic plans and policies surrounding virtual asset activities, regulating and supervising the issuance and offering of virtual assets and tokens, and prescribing regulations for virtual assets.

The UAE has always embraced technology and is one of the leading countries to issue virtual asset regulation laws to cement its role as a major player in global planning for the future of virtual assets. The UAE has always sought to become the global center for blockchain technology and digital assets.

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