The UAE adopts a framework for virtual resources

The Central Bank of the UAE said today Wednesday that a committee charged with combating money laundering has adopted a regulatory framework for virtual assets.

The Central Bank, a member of the National Committee for Combating Money Laundering and for Combating the Financing of Terrorism and Illicit Organizations, added in a note that the committee “announced the adoption of the framework for the regulation of virtual goods in the country according to the model approved from the point of view of measures to combat money laundering and the financing of terrorism”.

The statement stated that the Central Bank and the Securities and Commodities Authority were charged with overseeing the implementation of the rules.

“The framework is a first step towards more comprehensive regulation (of virtual assets) and ensures the protection of the financial system and investors from the risks of money laundering and terrorist financing,” he said.

The Financial Action Task Force (FATF), a financial crime watchdog, announced in 2019 that cryptocurrency companies would be subject to rules to prevent the use of cryptocurrencies such as Bitcoin for money laundering, and it was the world’s first regulatory effort to crack down on the industry in rapid growth.

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