Crypto news recap: UAE takes prominent steps in the crypto world

Subscribe Subscribe ALBAWABA- In the crypto news recap this week, the UAE took significant strides in the cryptocurrency world. The Central Bank issued comprehensive AML/CFT guidance for Licensed Financial Institutions, Gemini announced plans to obtain a crypto service license in the UAE, and the UAE and Hong Kong collaborated to enhance their financial sectors. These developments highlight the UAE's growing prominence in the crypto space and its commitment to innovation and regulatory compliance. UAE Central Bank Releases Guidance on AML/CFT Measures for Licensed Financial Institutions The Central Bank of the UAE (CBUAE) has issued comprehensive guidance to Licensed Financial Institutions (LFIs) regarding anti-money laundering and combatting the financing of terrorism (AML/CFT). The new guidelines specifically address concerns related to virtual assets, including cryptocurrencies and non-fungible tokens. Source: Shutterstock Drawing on the standards set by the Financial Action Task Force (FATF), the guidance assists LFIs in understanding and effectively implementing their AML/CFT obligations. It provides directives on customer due diligence (CDD) and enhanced due diligence (EDD) requirements when dealing with virtual asset service providers (VASPs) and their customers. The guidelines also highlight the significance of derisking and offering support to LFIs through training programs, governance systems, and record-keeping mechanisms. This proactive approach by the UAE Central Bank demonstrates their commitment to combating financial crimes and aligning with global AML/CFT standards. UAE & Hong Kong Strengthen Financial Collaboration at Bilateral Meeting The Central Bank of the UAE and the Hong Kong Monetary Authority recently held a bilateral meeting in Abu Dhabi to strengthen collaboration in their financial service sectors. The meeting covered various areas of cooperation, including financial infrastructure, market connectivity, virtual asset regulations, and the development of fintech initiatives. The central banks also emphasized joint efforts to enhance Central Bank Digital Currency frameworks and improve digital payments and settlements. To implement these initiatives, a joint working group led by the UAE and Hong Kong central banks will be established, involving stakeholders from the banking sectors of both regions. Following the meeting, a seminar was held with senior executives from prominent banks in the UAE and Hong Kong to explore cross-border trade settlement opportunities and capital market prospects in the Greater Bay Area. Gemini Plans Expansion into UAE, Seeks Crypto Service License Gemini, the cryptocurrency exchange owned by the Winklevoss brothers, has announced its intention to acquire a crypto service license in order to serve customers in the United Arab Emirates (UAE). The move comes in response to the increasing interest in cryptocurrencies among UAE citizens and positive engagements with local regulators. Cameron and Tyler Winklevoss, co-CEOs of Gemini, cited regulatory uncertainties and an unfavorable crypto environment in the United States as their motivation for expanding into the UAE. Gemini CEO Tyler Winklevoss expressed optimism about the discussions with UAE regulators, highlighting the country's ambition to become a crypto hub with balanced regulations prioritizing consumer protection and innovation. The exact location for Gemini's operations in the UAE is yet to be determined, with possibilities of establishing headquarters in both Abu Dhabi and Dubai. Gemini's Global State of Crypto Report reveals that over 35% of respondents in the UAE have invested in cryptocurrencies, surpassing the figure of 20% among respondents in the United States. Subscribe Sign up to our newsletter for exclusive updates and enhanced content Subscribe Now Subscribe Sign up to get Al Bawaba's exclusive celeb scoops and entertainment news Subscribe to our newsletter for exclusive updates and enhanced content Also Read For the First Time Ever.. An Arab Transexual to Star in a Shamia Environment Series (Picture) Subscribe Also Read For the First Time Ever.. An Arab Transexual to Star in a Shamia Environment Series (Picture)