Recently I’ve blogged about the discussions surrounding the enforcement of regulations on Cryptocurrencies (see Cyrptocurrency Crackdown) https://steemit.com/news/@themidichannel/cryptocurrency-crackdown
Well the UAE has now engaged in this conversation as well.
The Financial Services Regulatory of Abu Dhabi recently published a statement that it “is reviewing and considering the development of a robust, risk-appropriate regulatory framework to regulate and supervise activities of virtual currency exchanges and intermediaries……The FSRA notes that virtual currencies, although not legal tender, are gaining interests globally as a medium of exchange for goods and services.
However, there are risks and concerns. Given the anonymous and cross-border nature of virtual currency transactions, they are particularly vulnerable to money laundering and terrorist financing risks, as well as other financial crimes. Incidents of cyberattacks and cybercrime are also on the rise.
Several regulators and anti-money laundering bodies in jurisdictions including Australia, the EU, Japan, Singapore and the UK have introduced or proposed regulations to address such risks.” And the statement goes on and on. If you are interested in reading their full statement see the link below) https://www.adgm.com/mediacentre/press-releases/abu-dhabi-global-market-reviews-and-considers-regulatory-regime-for-virtual-currency-exchanges-and-intermediaries)
The statement doesn’t tell us anything different than any other Government or regulatory body is telling us. They all site the same reasons for wanting to increase regulation; anonymity, the potential for nefarious activities due to this anonymity.
The UAE government has also issued a warning to any investors who invest in Cryptos sighting that they are currently not monitoring any ICO’s; basically stating “buyer beware.”
When the stock market first started out in the late 1800’s and essentially there was no market, but brokers on the street buying and selling, trading, pieces of paper for ownership of a company. They also went through the same thing.
It was considered nefarious business, the brokers were thieves; there was no regulation. It was the wild wild west. It was something new.
Same thing applies here, but now we have sophisticated technology, and a product that is net new.
We are not only trading on new platforms and technologies, but are able to trade something that has never been seen before. I am not surprised then that there are all these questions and concerns about cryptocurrencies, are you?
This is a disruptive force, turning free markets on its head, and in doing so potentially has the ability to shift wealth and power to hands that wouldn’t normally have it.
Is this not something then that can create fear and concern in some?
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