Dubai is recommending regulatoryย authorities aroundย theย globe take a collaborative approach to close the gap in cryptocurrency regulations.
The Webย 3.0 industry operates without any limitations of geographical boundaries. Althoughย while this feature is a boon for worldwide innovation, bad actors can take undue advantage and use it to commit numerous crimes.
Reportsย by Bloomberg, Dubai is calling for a collaborative approach from worldwide regulatoryย authorities to tackle cryptocurrency crimes. As cryptocurrency operates under numerous jurisdictions, communication betwixt regulatoryย authorities is needed.
Elisabeth Wallace, an associate director at Dubaiโs Financial Service Authority, said:
โ Manyย of cryptocurrency enterprises tend to operate a wholeย lotย of number of activities within one umbrella and that really concerns us. They are across the whole world and as regulatoryย authorities, weย need talk to each other a lot more in this area because there can be quite severalย gaps, and we have seen manyย of bad actors attemptingย to plug some of those gaps.โ
Dubai, with its intendย to become a cryptocurrency hub, has been working to draft solid cryptocurrency regulations. In February, the city released rulebooks for cryptocurrency service providers, and failure to compile with them may result in a fine of up to 500,000 AED ($136,165)
Collaborative Cryptocurrency Regulations
Inย theย meantime, the European Union (EU) recently passed the Market in Crypto-Assets (MiCA) laws for cryptocurrency regulation. The 27 countries of the EU will work together on implementing MiCA legislation that aims at closing the loopholes in the systems that allow tax avoidance.
Similarly, Nirmala Sitharaman, the Finance Minister of India, has urged the countries to develop a worldwide policy approach for cryptocurrency regulations.ย
