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The United Arab Emirates (UAE) is trying to undertake cryptocurrency in a ‘major role’ in its buying and selling insurance policies, in accordance with a report by Bloomberg.

Speaking with Bloomberg Television in Davos, Switzerland – the place the World Economic Forum is at the moment being held – UAE’s minister of state for overseas commerce, Thani Al-Zeyoudi, made some optimistic statements on the potential position of cryptocurrency within the financial system of the gulf nation.

“Crypto will play a major role for UAE trade going forward,” stated Al-Zeyoudi. For years now, the UAE authorities has been engaged on reworking the nation into a world crypto hub, primarily by implementing crypto-friendly insurance policies with the purpose of attracting the large weapons within the $1 trillion business. 

Al-Zeyoudi mentioned this venture with Bloomberg stating UAE’s plan of a collaborative effort with these firms in creating the required authorized framework for the enlargement of cryptocurrency operations inside the Middle Eastern state.

“The most important thing is that we ensure global governance when it comes to cryptocurrencies and crypto companies,” he stated.

“We started attracting some of the companies to the country with the aim that we’ll build together the right governance and legal system, which are needed,” he advised Bloomberg in his interview on Friday.

UAE Expresses Support For Crypto Amid Market Woes

Just a day earlier than Al-Zeyoudi’s interview, the UAE’s minister for Artificial Intelligence, Digital Economy, and Remote Work Application Omar Sultan Al Olama, who can also be representing the Emirates on the World Economic Forum, stated that the nation remained dedicated to its purpose of changing into the world’s cryptocurrency hub whatever the current market crash.

While taking part as a speaker in a panel dialogue titled “Finding The Right Balance For Crypto,” Sultan Al Olama made these claims whereas saying that crypto firms already referring to the UAE as house was a optimistic factor to notice. 

Last November, the crypto market recorded heavy losses following the stunning collapse of the FTX trade. Although the market remains to be removed from a full restoration, there have been regular positive factors in the previous few weeks. 

For instance, Bitcoin, the crypto market chief and the world’s greatest digital asset, has recorded a rise of 37.40% in its worth for the reason that starting of 2023. According to data from CoinMarketCap, BTC is buying and selling at $22,621.05 per unit with a market cap of $435.9 billion. 

BTC Trading at $22712.00 | Source: BTCUSD chart on Tradingview.com

Could UAE Become The Crypto Capital Of The World?

At a number of occasions in the previous few years, the Middle Eastern nation has acknowledged its need to turn out to be the worldwide central hub for cryptocurrency operations. To this finish, the nation’s authorities has repeatedly launched a number of insurance policies aimed toward encouraging the actions of blockchain-based companies within the nation.

So far, these efforts have been a large success, with over 400 lively crypto companies at the moment working within the UAE. Furthermore, because of a pleasant regulatory framework, a number of exchanges, together with Binance, OKX, BitOasis, and many others., have all acquired licenses to function within the nation. 

Dubai, the nation’s business hub, has additionally performed host to outstanding cryptocurrency festivals, together with the World Blockchain Summit, Crypto Expo Dubai, CryptoFest, and many others.

Clearly, the United Arab Emirates is on the best trajectory to realize its lofty purpose. Although the nation nonetheless faces a number of challenges, together with the fixed danger of fraud and rising competitors from different nations with comparable objectives, (e.g., Bahrain, Qatar, Egypt, and many others.), the UAE is at the moment the main contender to turn out to be the crypto capital of the world. 

Featured Image: Analytics Insight, Chart from Tradingview.com