Abu Dhabi establishes a committee to oversee crypto regulation

• According to reports, the committee would be made up of the “Abu Dhabi Global Market, the SCA, state wealth funds ADQ and Mubadala, the Abu Dhabi Investment Office, and professional services firm Mazars.”

• Six months ago, the Financial Action Task Force (FATF) placed the United Arab Emirates (UAE) on a watchlist of money laundering concerns. 

Abu Dhabi has become one of the known crypto hubs approving the license of several branches of digital asset firms. Recently, it formed a government body, “The Abu Dhabi Blockchain and Virtual Assets Committee (ADBVAC)” to oversee crypto regulation and promote the virtual asset industry within its jurisdiction.

The city hosted an inaugural meeting held by the ADBVAC and chaired by Mohamed Ali Al Shorafa, chairman of the Abu Dhabi Department of Economic Development and chairman of the Securities and Commodities Authority (SCA). As part of the topics of discussion, the committee seeks to introduce a regulatory framework to build a safe, sound, and transparent ecosystem for digital assets. In addition, it seeks to ensure that all crypto firms within its jurisdiction comply with anti-money laundering and counter-terrorist financing rules. 

According to reports, the committee would be made up of the “Abu Dhabi Global Market, the SCA, state wealth funds ADQ and Mubadala, the Abu Dhabi Investment Office, and professional services firm Mazars.”

The committee has been mandated to support the exchange of information, encourage best practices for participants, and ensure that the blockchain and virtual assets space within the city is competitive. 

UAE’s ongoing effort to control the virtual asset space

Six months ago, the Financial Action Task Force (FATF) placed the United Arab Emirates (UAE) on a watchlist of money laundering concerns. In response, Shorafa believes that the body would help offset all the known expected risks.

The committee is bringing together all the relevant stakeholders to build a robust, credible, and comprehensive regulatory and business ecosystem that addresses key risks and major governance issues, such as AML/CFT, investor protection, tech governance, and custody risk, to promote blockchain and virtual assets.

The UAE has also established the Dubai Virtual Asset Regulatory Authority (VARA) joining the likes of Singapore, the United States, the United Kingdom, and El Salvador to introduce crypto laws. Interestingly, VARA made a dramatic step into the metaverse by establishing its metaverse HQ in The Sandbox. 

VARA was established in collaboration with UAE Central Bank and Securities and Commodities Authority, to take charge of services related to digital assets. This includes providing licenses and enforcing regulations of firms operating in the virtual asset industry. It is also mandated to oversee

The development of strategic plans and policies surrounding virtual asset activities, the regulation and supervision of the issue and offering of virtual assets and tokens, and the prescribing of regulations to virtual assets.

The UAE has always embraced technology and is one of the leading countries to have published laws on the regulation of virtual assets to solidify its role as a major player in the global planning of the future of virtual assets. The UAE has always sought to become the world center of blockchain technology and digital assets.