UAE set to join top financial markets to regulate cryptocurrency exchanges

Cryptocurrencies still remain a relatively mysterious subject. While it is gaining much traction in the market, it still faces cybersecurity risks. Essentially, it allows people to own funds without the need of banks. But in 2018 alone, the industry lost $1.1 billion to theft. Needless to say, the security needs to be beefed up to win and maintain investor’s confidence and public’s trust.

Naturally, many jurisdictions are facing regulatory pressure to tighten security around exchanges, and the second-biggest Arab economy, the UAE is now set to join top global financial markets to regulate crypto-assets, with initial coin offering rules to be finalised by mid-2019. Two of the fastest growing financial hubs in the region, Abu Dhabi Global Market and Dubai International Financial Centre are keen to implement crypto-exchange legislation in 2019.

When it comes to risks, cybersecurity is often thought to be a technical problem, however, according to Hans Fraikin, the Chief Executive of the Libra Project, it is in reality a risk management issue. Read more about the cryptocurrency industry, its risks and need for regulations here.