Dubai’s Financial Services Authority (FSA) has emphasized the need for increased communication and collaboration among global financial regulators. The aim is to create greater obstacles for dishonest individuals seeking to exploit regulatory gaps in the crypto industry across different countries.
As bitcoin (BTC) and other cryptocurrencies gradually become more accepted by the general public, with approximately 420 million people worldwide currently using these new digital assets, it is crucial to stress the importance of favorable regulations. Such regulations are needed to ensure consumer protection and prevent illegal activities from occurring within the cryptocurrency industry.
In the recent update, the Dubai Financial Services Authority (FSA), which oversees and enforces rules against money laundering and terrorist financing in the area, has emphasized the importance of collaboration among international regulatory agencies. The FSA highlights the need for these agencies to join forces and work together.
During a virtual conference on May 26, Elisabeth Wallace, an associate director at the Dubai Financial Services Authority (FSA), emphasized the necessity for regulators from different regions to enhance communication and collaboration. The aim is to increase the difficulty for malicious individuals to take advantage of loopholes in cryptocurrency regulations.
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Wallace suggested that numerous web3 businesses often exceed regulatory limits by providing a wide range of products and services within a single entity.
“They are present worldwide, and as regulators, we must enhance our communication in this field because there are significant gaps that need to be addressed. We have observed numerous malicious individuals attempting to exploit these gaps.”
Due to its favorable cryptocurrency regulations, the United Arab Emirates (UAE) is rapidly emerging as a thriving hub for businesses involved with bitcoin (BTC) and related activities.
Last year, Dubai’s Virtual Assets Regulatory Authority (VARA) implemented new guidelines for crypto businesses. These rules were put in place to reduce risks associated with cryptocurrencies and create a favorable environment for these businesses to grow.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.