Kokila Alagh, a legal expert, provided information about crypto and blockchain legislation and standards in the United Arab Emirates۔ What else did Alagh say? Let’s take a closer look.

Many countries are predisposed to outright prohibit the use of Bitcoin (BTC) and other virtual currencies. The United Arab Emirates’ regulators are going in a different direction. By providing frameworks, the country has consistently carried out its perspective about becoming a blockchain capital. To advise cryptocurrency companies about how to operate legally.

The country’s jurisdictions are split into the mainland, which is regulated by the Securities and Commodities Authority (SCA), and free zones. As an example, geographically defined areas within the UAE with lax government and regulatory regimes.

The Dubai International Financial Centre (DIFC), which is governed by the Dubai Financial Services Authority (DFSA), and Abu Dhabi Global Markets are examples of such free zones (ADGM). The Financial Services Regulatory Authority (FSRA) regulates this, as does the Dubai Multi Commodities Centre (DMCC), which is regulated by the SCA.

During an interview, Kokila Alagh, founder and CEO of Karm Legal Advisors, gave a brief description of the country’s regulatory situation. The SCA, the mainland regulator, provides an assurance and possibilities for crypto and blockchain businesses, according to Alagh:

The regulations brought certainty and opened up new possibilities in the UAE. As a result, SCA is a forward-thinking regulator in the globalized world, as they have not ignored this vital new area and are constantly working. Working on developing frameworks to adapt to emerging sectors such as DLT and blockchain.

The ADGM’s financial services regulator, the FSRA, was the first in the country to implement digital asset regulations in 2018. According to Alagh, ADGM was also one of the first regulatory agencies in the world to implement digital equities regulations and guidance. Regarding digital assets, ADGM is “one of the top jurisdictions for formed blockchain companies.”

Alagh also talked about the DIFC’s regulations. The DFSA, DIFC’s regulator, “is one of the first regulatory agencies from a significant financial free environment to bring rules and regs in regard to security tokens,” according to Alagh.

Also Read: Binance Signs a Partnership in Dubai to Collaborate On a Global Crypto Framework

Tokenization of securities via blockchain and distributed ledger is currently covered by DFSA regulations. Tokenization of shareholdings, derivative products, bonds, convertible notes, certificates, or fund units is one example. Consultation papers for stablecoins, exchangeable cryptocurrencies, and no fungible tokens, on the other hand, are still in the works.

Finally, Alagh mentioned DMCC. Special licenses were granted by the free zone, including the DLT new tech service provider licence and the prop trading in crypto commodities license. It also has a cryptocurrency-focused center called Crypto Oasis, where over 130 blockchain companies have registered.

According to Alagh, “the DMCC is one of the most innovative regulatory agencies in this universe and has helped launch the development of the UAE’s crypto ecosystem.” The DMCC is a crypto-friendly controller that offers companies a friendly framework for establishing a business.”

Meanwhile, Binance has announced plans to work with the UAE government to help crypto exchanges and companies obtain licenses in Dubai. As part of the launch of a crypto hub, the company MOU with the Dubai World Trade Centre Authority.