Dubai warns of risks of gaps in the crypto industry

dubai min
dubai min

The Dubai Financial Services Authority (DFSA) has urged global regulators to start collaborative talks to prevent regulatory gaps in digital assets from being exploited. It is reported by Bloomberg.

The head of the DFSA, Elizabeth Wallace, noted that the agency plans to update the local cryptocurrency legislation, presented in early 2022.

“We, as regulators, need to talk to each other more [по вопросам цифровых активов]because there can be quite a lot of gaps and we have seen a lot of unscrupulous players trying to take advantage of some of those gaps,” she said.

According to Wallace, the agency is concerned about the many crypto companies that carry out “a significant amount of operations under one roof.”

Dubai authorities see the potential in digital assets and are trying to support the industry. Previously, bitcoin exchanges Huobi, OKX,, and Binance received licenses to provide cryptocurrency services in the emirate.

In February, the head of the latter, Changpeng Zhao, urged entrepreneurs to consider moving to countries with more favorable regulation. Among them, he named Dubai, Bahrain and France.

Recall that in August 2022, the Dubai Virtual Assets Regulatory Authority (VARA) published new rules governing the advertising and promotion of cryptocurrencies.

Earlier, VARA announced the opening of its office in the metaverse of The Sandbox project.

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