Free VPS Trial, no credit card required
Learn More
NetShop logo

Home

Blog

United Arab Emirates considers officiall...

United Arab Emirates considers officially recognising Bitcoin

United Arab Emirates considers officially recognising Bitcoin

Published on Wed Feb 22 2017

The government of the United Arab Emirates is planning to form a clear regulatory framework on the usability of Bitcoin and digital currency exchanges in the near future.

On January 1, 2017, the Central Bank of UAE published a document “Regulatory Framework for Stored Values and Electronic Payment System,” that contained its vision of leading market adoption of digital payments and fintech technologies within the UAE.

A part of the document explicitly prohibited the use of virtual currencies, outlawing virtual currency transactions and trading. The document caused controversial discussions within the industry and raised a question whether the bill considers bitcoin and other digital currencies currently in existence.

Mubarak Rashed Khamis Al Mansouri, the governor of the Central Bank of the UAE, confirmed that the document doesn’t consider digital currencies like Bitcoin. Al Mansouri added that the central bank is considering legalising Bitcoin and “developing necessary regulatory frameworks for businesses and exchanges to comply with”.

The Central Bank of UAE may follow the example of the Bank of Canada, which recently announced that digital currencies like Bitcoin need government intervention for it to grow further.

In the report “Canadian Bank Notes and Dominion Notes: Lessons for Digital Currencies”, the researchers stated:

“We conclude that well designed and managed private digital currencies could circulate widely but only with appropriate government regulation to ensure their safety, soundness, and uniformity”.

Share this article

Recent Posts

NetShop ISP will Showcase Forex VPS Solution at iFX EXPO Dubai 2021

NetShop ISP will Showcase Forex VPS Solution at iFX EXPO Dubai 2021

April 19, 2021

How to Secure your Website with FREE SSL

How to Secure your Website with FREE SSL

April 16, 2021

How to change your WordPress Website Domain

How to change your WordPress Website Domain

April 15, 2021

How to Upgrade Debian 9 to Debian 10 using CLI (command line)

How to Upgrade Debian 9 to Debian 10 using CLI (command line)

April 14, 2021

How to start trading Forex with low latency

How to start trading Forex with low latency

April 13, 2021