UAE government consider to officially recognize bitcoin

Regulation | February 22, 2017 By:

The government of the United Arab Emirates (UAE) and its Central Bank plan to provide a clear regulatory framework on the usability of bitcoin and operations of digital currency exchanges in the near future.

Several weeks ago, the Central Bank of UAE published a document, the “Regulatory Framework for Stored Values and Electronic Payment System,” containing its “vision of leading market adoption” of digital payments and fintech technologies within the country. One section of the document explicitly prohibits the use of virtual currencies, which, of course, resulted in controversial discussions and companies asking the central bank if the bill considers bitcoin and other digital currencies currently in existence.

Central Bank Governor Mubarak Rashed Khamis Al Mansouri confirmed that the document doesn’t consider digital currencies, but he stressed that the central bank is carefully considering legalizing bitcoin as well as “developing necessary regulatory frameworks for businesses and exchanges to comply with.”

In late 2016, the government of Dubai also emphasized that government officials and political leaders will come together to discuss the potential of Bitcoin and Blockchain technology within the realm of finance and particularly the financial industry and ecosystem of the UAE.