Dubai’s Regulator Shares Its Concerns Regarding Regulatory Gaps In Crypto Market

The crypto market is continuously getting more and more traction in the mainstream economic world. The common masses are increasingly adopting this space with time. In addition to this, regulatory agencies around the world are also paying a lot of attention to dealing with the difficulties experienced by them while dealing with the latest difficulties posed by the swiftly evolving sector.

Dubai’s Regulator Points Out Vulnerabilities in the Regulatory Sector

At this time, some countries have adopted blockchain and crypto technology. Their decision in favor of these burgeoning sectors is focused on promoting economic growth and innovation. On the other hand, the rest of the jurisdictions are still skeptical about these technologies. Hence they have moved toward a relatively cautious approach in the case of regulation.

A report has recently been published by Bloomberg in this respect. The news platform mentioned in that report that several apprehensions have been voiced by the Dubai Financial Services Authority (DFSA) about the worldwide regulatory issues that are being faced within the industry. The DFSA has cautioned against the malicious actors operating within this sector.

As per the agency, these people focus on the aforementioned blind spots. According to the DFSA, the respective people exploit the regulatory vulnerabilities to deceive unsuspecting investors. Keeping that in view, the organization has pointed toward the need for coordination between the diverse regulatory agencies to stop such activities, as noted in a recent report published by Bloomberg.

 Elisabeth Wallace, the DFSA’s Associate Director also commented on this. Wallace mentioned that malicious people are swindling the hard-earned money of innocent people with their tricky techniques. The executive added that these people exploit the gaps within the regulatory agendas. As a result of that, they are effective in performing their illegal activities around the globe.

DFSA to Update Its Crypto-Related Regulatory Measures to Prevent Malicious Activities

Wallace take part in a virtual conference and made these remarks. The executive claimed that the strategy of the DFSA takes into account the improvement of its rules related to crypto assets. The regulatory agency has scheduled the respective update for the middle of the current year. The rules implemented since November cover the business hub of the city and target the regulation of the blockchain as well as the crypto worlds within the region.

Dubai’s authorities have made crucial advancements in the regulation of the instantly growing industry over the recent few years. Back in the year 2019, a platform was launched by the Dubai Multi Commodities Centre (DMCC) for the trading of digital assets. The purpose of establishing the respective platform was to offer a regulated as well as secure environment to the common masses where they can easily trade digital assets.

The Dubai Multi Commodities Centre Authority is responsible for the regulation of the entities that are providing services within the DMCC Free Zone. Along with this, the Dubai Financial Services Authority is also credited for the regulation of the business industry of the city. Back in 2020’s November, the agency issued a regulatory agenda to cover the trading and issuance of digital assets.

The respective agenda directs the firms to get a license to operate as legitimate service providers. Apart from that, it also orders them to abide by a series of regulatory requirements. These requirements include counter-terrorist financing (CTF) and anti-money laundering (AML) measures.