Anti-Money Laundering and sanctions framework relating to virtual assets has taken a new shape in the United Arab Emirates (UAE). The Financial Services Regulatory Authority (FSRA), a monetary regulator in the country via a document released on Thursday defined the role of virtual assets relating to ATML regulations.
The development surfaced as the FSRA made some adjustments to its Anti-Money Laundering and Sanctions Rules and Guidance. The regulation is otherwise known as the AML Rulebook. In the amendment, the financial watchdog clearly defined virtual assets as one of the existing mediums of payment in UAE.
More so, the new definition of virtual assets emanated as a change to the Financial Action Task Force’s (FATF) Travel Rule. Experts provided insights into the amendment indicating that it will have a direct and huge impact on companies operating within the AML Rulebook. The impact will affect regulated companies like those operating in the financial sector. Also, the adjustment will have a direct impact on designated non-financial establishments.
Further, the modification will strongly strengthen the regulation of the FATF’s Travel Rule on virtual assets. As indicated, the latest development will provide detailed information about regulations relating to money laundering, proliferation financing, and terrorism financing. Additionally, the new regulations in UAE will ensure that registered firms within the AML Rulebook comply with existing stipulations.
How Crypto is Faring in UAE
Lately, UAE has emerged as one of the top hubs for crypto investment. The relaxed crypto regulation in the country and the larger part of the Middle East has placed the region in the limelight of the virtual assets industry. As per emerging reports, the United Arab Emirates government has approved a regulatory stipulation for cryptocurrency.
Likewise, reports also indicated that the Middle East country is in the final stage of designing its stablecoin regulation. The friendly approach of UAE towards cryptocurrency has attracted a host of companies. Similarly, these virtual assets firms have established their presence in the country to grow alongside the emerging virtual assets industry in the region.
So far, crypto firms like Binance, Kraken, and CoinCorner have established their presence and introduced virtual asset innovations in the UAE. According to a Binbits report, Curtis Ting, the managing director of Kraken announced that the crypto exchange has opened its business enterprise in the country.
According to the executive, the crypto exchange will offer local investors the pathway to explore international liquidity via dirham (AED) trading pairs. Meanwhile, with the initiative, Kraken became the first exchange to allow funding and transactions on its platform using the local currency of UAE.