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United Arab Emirates Consider to Officially Recognize Bitcoin, Work on Regulatory Framework

by Joseph Young, Coin Telegraph:

Following in the footsteps of the Philippines and China, the government of the United Arab Emirates (UAE) and its Central Bank plan to provide a clear regulatory framework on the usability of Bitcoin and operations of digital currency exchanges in the near future.

On Jan. 1, 2017, the Central Bank of UAE published a document entitled “Regulatory Framework For Stored Values and Electronic Payment System” with a vision of leading market adoption digital payments and fintech technologies within the UAE.

Is Bitcoin legal in UAE?
One section of the document called D.7.3 explicitly prohibited the usage of virtual currencies, disallowing digital currency transactions and trading. The document led to various controversial discussions within the UAE Bitcoin and fintech industries, as leading companies inquired the Central Bank if the bill considers Bitcoin and other digital currencies in existence.

The section read:

“Virtual Currency(s) is not recognized by this regulation. Exceptions are made to a digital unit that: a) can be redeemed for goods, services, and discounts as part of a user loyalty or rewards program with the Issuer and; b) cannot be converted into a fiat /virtual currency.”

In response, Mubarak Rashed Khamis Al Mansouri, the governor of the Central Bank of the UAE, announced that the document doesn’t, in fact, consider digital currencies like Bitcoin, trading platforms, companies and Blockchain technology.

Al Mansouri further noted that the Central Bank of the UAE is in careful consideration of legalizing Bitcoin and developing necessary regulatory frameworks for businesses and exchanges to comply with.

In late 2016, the government of Dubai also emphasized that government officials and political leaders will come together to discuss the potential of Bitcoin and Blockchain technology within the realm of finance and particularly the financial industry and ecosystem of the UAE.

A government statement read:

“The Supreme Legislation Committee in the Emirate of Dubai (SLC) has announced that it will discuss the present and future of the legislative and legal frameworks related to cryptocurrency known as Bitcoin during a workshop on ‘Virtual Currency: Fact and Law.’ In cooperation with the Dubai Electronic Security Center (DESC), the session will be held on Nov. 20, 2016, amid high-level attendance of local and federal government entities.”

A case similar to that of the Philippines

The legality of Bitcoin is nearly identical to that of the Philippines prior to the release of BSP Circular No.944, a document released by the central bank of the Philippines recognizing Bitcoin as a remittance network and legitimate payment method.

Government officials and regulators of the UAE are optimistic towards Bitcoin and seeing great potential in Bitcoin businesses, exchanges and market. UAE central bank governor, as well as other important figures within the UAE financial industry, have announced publicly on several occasions that the government is close to releasing a nationwide regulatory framework on Bitcoin to ensure the digital currency market prospers under careful oversight of the government.

Read More @ CoinTelegraph.com

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7 comments to United Arab Emirates Consider to Officially Recognize Bitcoin, Work on Regulatory Framework

  • thinking outside the matrix

    I tried to tell people that Bitcoin is marching towards mainstream adoption. Bitcoin was created by the global Elite as a metric of accounting and ledger for global trade. It was designed to be Digital Gold. I Don’t know why at this point people can’t seem to figure this out. Hopefully people will figure it out sooner than later. The price is $1,114 as of now. If the Elite wanted to get rid of it they had plenty of chances and have seem to be giving Bitcoin a free pass from what I can see. The next steps for Bitcoin by the Elites is regulation and Biometrics.

  • videoctr

    How can a maximum allowed production of 21 million bit coins become a global currency? Doesn’t seem like there would be enough coins to spread around as a global currency.

    • Eric

      It can’t really. It is divisible into 1 million satoshis. And accepted by some globally. But it is not and will not be used to settle trade between nations. That’s why central banks do not hold it. As outlined in this article…

      “In response, Mubarak Rashed Khamis Al Mansouri, the governor of the Central Bank of the UAE, announced that the document doesn’t, in fact, consider digital currencies like Bitcoin, trading platforms, companies and Blockchain technology.

      Al Mansouri further noted that the Central Bank of the UAE is in careful consideration of legalizing Bitcoin and developing necessary regulatory frameworks for businesses and exchanges to comply with.”

      Heavily regulated like everything else. First Majestic Silver is still outperforming the price of Bitcoin even with the recent pullback by almost double.

      Bitcoin – currency of scam artists, criminals, conmen, and poor people.
      Gold – currency of central banks, wealthy, and honest money advocates.

      I will buy no Bitcoin.

      • videoctr

        It will be interesting to see how this plays out. By the way, First Majestic has a conference call tomorrow. 1pm eastern time. Go to their website to listen in.

      • thinking outside the matrix

        The problem is you’ve been saying the same think since the price was $230. When Eric speaks the price of Bitcoin rises, lol. You still can’t explain why the price is continuously rising. In your terms, why is the purchasing powering rising faster than gold and silver? Please explain using facts not opinions. First Majestic Silver is just a stock. It’s not a currency. Why do you keep cherry picking this one stock? Are you suggesting people should buy it in order to preserve their purchasing power? I don’t know why you keep bringing it up. I think your doing this to confuse people. People are looking for ways to preserve their wealth following a crisis. If there was a currency crisis somewhere in the world, you think people will run out and buy First Majestic Silver to protect their wealth. Answer, Nope! In China, Venezuela, Nigeria, Japan, Argentina, India and Mexico they are buying BITCOINS! You just got schooled by facts not opinions….. I predicted this bc to me it’s obvious.

        • Eric

          Boy, the bitcoin cult really hates honest money. Krell and I have been posting more current news about bitcoin than all of you guys, including updates from Chinese and Indian wealth pushing the price up. First Majestic Silver is a company. The stock is different. Bitcoin is actually too volatile to be a feasible currency, and it isn’t accepted hardly anywhere. I see both stocks and cryptocurrencies as speculative assets. Not stores of wealth. I don’t have any trouble with people speculating and do think it is healthy for one’s portfolio as long as they are careful and manage their risk. But making bitcoin out to be things it is not, is not only dishonest and not healthy, but detrimental to one’s portfolio. It isn’t going to replace reserve currencies. It isn’t going to settle trade between nations. The price trades like a hot tech stock and it isn’t accepted widely enough to be a real currency. And since there is nothing tangible or real behind it, it is anything but a long term store of value and sound money. Money is a product of the market process. Can you tell me the fair value of 1 BTC denominated in USD today vs. tomorrow vs. 5 years from now and why? I can easily make the case that it should be zero. Maybe not today. Maybe not tomorrow. But one day in the near future. First Majestic Silver will still exist and so will the millions of ounces of Silver they have mined.

          http://www.garynorth.com/public/11828.cfm

          Speculate on anything you want. Just don’t make whatever it is out to be something it’s not. If you want to speculate on a ponzi scheme, it’s okay by me. Lots of people have hard lessons to learn. I will continue to speculate on what I know which is Gold and Silver companies with strong balance sheets and real metal in the ground, and save in sound money like Gold, Silver, Platinum, Palladium, Copper, etc. Just remember, at the end of the day it all still comes down to “if you don’t hold it, you don’t own it.”

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