The Securities and Commodities Authority (SCA) of the United Arab Emirates has drafted a resolution for better regulation of digital assets such as cryptocurrencies. This should offer more clarity to crypto projects in the country. An interview with Suhki Jutla, a blockchain author, recently published on Cointelegraph explains why this is a positive signal for the region.
The Middle East is not often seen as a hotspot for blockchain and cryptocurrency. Nevertheless, there are considerable opportunities in the region with here and there countries that take a particularly positive view of the blockchain industry. In the interview, Jutla says that the resolution is a positive signal:
They indicate that they are open to exploring this area and by creating guidelines they give more reassurance, confidence, and stability to business owners who want to enter this sector.
The UAE could also use this signal to persuade other countries to take such measures to encourage blockchain technology and cryptocurrency in the region. According to Jutla, the UAE ensures that they do not miss the boat in this way:
The UAE has been smart enough to understand that this innovation will grow in the coming years, so they don’t want to miss it. It would not surprise me if the UAE becomes the leading nation in this space, just like they did with the oil industry.
A city in the UAE, Dubai, plans to become 2020 the first city in the world to become a blockchain city. Earlier this year, the Smart City organization held a competition for developers to help Dubai achieve this goal.