Dubai's financial regulator has warned that global auditors should speed up discussions with each other to prevent malicious people from taking advantage of loopholes in cryptocurrency rules.
Dubai Watchdog Warns of Risks of Crypto's Global Regulatory Gaps
The regulator’s regulation on cryptocurrencies has been in effect since November. Dubai and Hong Kong are trying to attract digital asset companies.
Elisabeth Wallace, who serves as an assistant director at the regulatory agency, said that Dubai Financial Services Authority is planning an update to the crypto token rules for the city's business hub, which has been in place since November, that could come later this year.
“Many crypto businesses tend to run a significant number of activities under one umbrella, and that really worries us,” Wallace said at a virtual conference today.
"They operate all over the world, and as regulators we need to talk to each other a lot more in this area because there can be quite a few gaps and we've seen a lot of malicious people trying to close some of those gaps," he said.
Regulators around the world are looking for ways to govern the crypto industry. Jurisdictions like Hong Kong and Dubai are trying to attract crypto-related investments.
Singapore plans to restrict the participation of individual investors. US regulators, on the other hand, are squeezing in crypto firms after the collapse of digital asset exchange FTX and a deep market crash last year.
While all these developments were taking place, Bitcoin (BTC) was trading at $ 26,350.
*Not investment advice.
