The United Arab Emirates (UAE) plans to attract global cryptocurrency giants like Binance by amending local legislation and wants to start mining cryptocurrencies in earnest.
Bloomberg reports that the United Arab Emirates government plans to issue federal licenses that will allow large global companies working in the cryptocurrency space to operate widely in the country. A source told Bloomberg that the UAE is looking to surpass crypto hubs like Singapore and Hong Kong by inviting more VASPs (virtual asset service providers). In addition, the country plans to create an ecosystem for cryptocurrency mining.
Currently, the local regulator is finalizing changes to legislation that will enable VASPs to establish businesses in the country. The government official who shared this information chose to remain anonymous.
Global crypto trading giant with the largest trading volume, Binance, is one of the companies aiming to establish a more solid presence in the UAE. It can compete with global crypto hubs such as the UAE, Hong Kong, and Singapore, allowing such companies to operate widely; these two countries are also preparing regulations that will allow crypto companies to operate there at full scale. Some districts in the UAE have already licensed a number of VASPs that allow work and tax payments. About 22 crypto platforms have been licensed in Dubai.
At the same time, Bloomberg says that UAE government regulation includes points related to fraud, money laundering and criminal use of cryptocurrencies. Authorities prefer to regulate this space rather than ban VASPs.
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