Abu Dhabi Global Market published a range of amendments to its crypto framework based on the guidelines proposed by the Financial Action Task Force last year. The new update also changes the term from “crypto-assets” to “virtual assets,” which is more aligned with the terminology deployed by FATF.
UAE attempts to make crypto regulations more clear
The updated crypto regulations make the legal framework in the UAE more detailed than it was previously. The FATF based guidelines are meant to help law enforcement track suspicious activities and stop money laundering and terror financing, but the guidelines require crypto exchanges to store and share information about the users. The FATF guidelines are anti-privacy as they eliminate the anonymous factor in crypto dealings.
Other countries are also implementing FATF guidelines.
As the deadline approaches for counties to implement FATF guidelines, several nations have already begun updating crypto regulations. South Korean and Singapore have passed legislation that forces crypto companies to comply with anti-money laundering frameworks as proposed by the FATF. European Union also introduced a new anti-money laundering law that puts crypto in the same legal category as banks and payment processors. The new regulation has also caused several crypto businesses to shut down their operations as they did not want to compromise users’ privacy.
Saudi Arabia and the UAE previously announced plans for developing a digital currency, which would be used to settle transactions between the two countries.