Christian Borel, senior executive officer at SEBA Bank MENA, highlighted the stark differences in regulatory approaches between the United Arab Emirates (UAE) and the U.S. towards the burgeoning crypto industry.
"What the United Arab Emirates (UAE) has built is unique: an efficient, solid infrastructure that continues to attract both talent and capital from all over the world," he said, in an interview with Benzinga.
The proactive measures taken by the UAE, especially in Dubai and Abu Dhabi, foster a supportive environment for cryptocurrency and blockchain businesses.
This stands in contrast to the more conservative approach observed in the U.S., especially with the Securities and Exchange Commission's (SEC) recent crackdown on crypto exchanges.
Drawing attention to the UAE's agile regulatory stance, Borel stated, "On the global stage, UAE regulation is agile and proactive. Instead of immediately shutting down innovative operations that don’t easily fit our centuries-old perception of the economy, like we’re seeing in the United States...UAE regulators work to find a new solution."
This highlights the UAE's willingness to understand and adapt to the nuances of emerging technologies, rather than dismissing them outright.
Discussing the protective measures in place for crypto investors in the UAE, Borel emphasized the role of regulatory bodies like the FSRA in Abu Dhabi and VARA in Dubai.
He said that digital asset regulation in the UAE is enforced in order to protect the customer and that the FSRA has been at the forefront of recognizing the value of the crypto economy, while VARA, though newer, has set strict standards to ensure end-user protection.
Reflecting on the broader crypto landscape in the UAE, Borel says there has been a significant growth trajectory over the past five years, driven by the government's proactive initiatives.
"In terms of a future outlook, regulation is becoming an increasing priority as we see license issuers turn more diligent, only satisfied with the highest standard and an impermeable framework to secure investors’ safety," he said.
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