Crypto enthusiasts speak about the prospects for digital assets in the UAE and the EU
Cryptocurrency lawyer Irina Heaver pointed out a sudden reversal in the policy of the UAE authorities regarding the free circulation of digital assets in the country. In an interview with a Cointelegraph journalist, the expert said that the new market supervision rules approved by the CBUAE board of directors could in reality mean a ban on such operations.
This, according to Hiver, raises concerns regarding the compliance of innovations with the ambitions of the United Arab Emirates, the image of the state and the need to attract foreign investors.
“From the moment the new rules of the UAE Central Bank come into force, no person or organization will be able to accept any other cryptocurrency for goods or services unless it is a payment token in dirhams licensed by the regulator. At the same time, registered foreign payment tokens can only be used to purchase other virtual assets, and CBUAE can impose fines and sanctions for violations if it deems it necessary,” the lawyer explained the new rules.
Due to the fact that there are currently no licensed dirham payment assets or registered foreign tokens in the region, the UAE Central Bank is effectively limiting all domestic transactions in digital coins, Hever said.
And the head of research at Outlier Ventures, Jasper De Maire, recalled that a significant number of stablecoins are pegged to the US dollar. According to him, this makes it unlikely that companies issuing digital coins will be able to meet all the criteria of European Union legislation on cryptocurrencies.
De Maire admitted that in the near future, European residents will receive notifications from large platforms and stablecoin issuers about the suspension of support for dollar-pegged coins in the EU.
The consequence of the decision to stop some crypto companies from operating in the European Union will be the restriction of investor access to the digital currency market. New legislation, approved by the authorities of EU countries, allows the circulation of stablecoins, whose issuers are licensed to operate and issue electronic money, have a reserve isolated from other assets in a 1:1 ratio and store it with a third party.
