business

|

August 18, 2019

|

2335 views


| Your comment matters, please click here to rate article!



Financial consultants, bankers and investors usually fail to understand the true concept behind investment in cryptocurrency, and yet we cannot blame them for unsolicited information available through varied platforms. Thus, Corporate Lawyers of Dubai will walk you through the whole path of cryptocurrency from its emergence until now.

The term Bitcoin, Cryptocurrency and blockchain were peculiar for the world until Satoshi Nakamoto an unrecognized inventor of Bitcoin announced in late 2008 about Electronic Cash System. The concept flooded in world's market like rapid fire and investors around the globe built a crypt currency market for buying and selling. UAE was also unknown and unfamiliar to this concept until the tides of elevated profit hit the market as compared to the current picture where world's first cryptocurrency deep "cold storage" entities are established and functioning in UAE.

The Definition

It is an innovation and a virtual currency that uses cryptography, a procedure to convert legitimate information into an unbreakable code in order to track buyers and sellers. The need for such secure communication arose and evolved in the digital era with the aid of a secure online platform. This currency is operated by way of blockchain technology in contrast with fiat currency where one authority such as central bank regulates the currency. Cryptocurrency seeks their validation from a decentralized system wherein an investor participating in the process can seek verification. Particularly, Nakamoto benefitted the process of blockchain technology and created the infamous Bitcoin.

Laws of UAE regulating Cryptocurrency

FSRA-ADGM (Financial Services Regulatory Authority of Abu Dhabi Global Market) was the first in line to issues guidelines and regulations in relation to activities of buying and selling Cryptocurrency. The guidelines were regarding the regulation of Initial Coin Offerings (ICO) and virtual currencies wherein, the public at large can purchase and sell Cryptocurrency. FSRA-ADGM will determine the specific commodity on the case to case basis. The objective of ADGM regulations if to increase transparency and to restrict money-laundering activities and to combat financial terrorism.

Inspired by ADGM regulations, DMCC (Dubai Multi Commodity Authority) has provided an opportunity for investors to incorporate a business of trading in Cryptocurrency. However, companies would only be allowed to trade on their own behalf. Accordingly, such companies can establish the world's first Cryptocurrency deep "cold storage" cellar.

In an offer to become a pioneer in blockchain innovation, the UAE has propelled the UAE Blockchain Strategy 2021, as per which half of the government exchanges will be directed utilizing blockchain innovation by 2021. To consolidate its vision, rules and regulations on the utilization of crypto resources, including cryptographic forms of money, have recently been issued.

Prior to the issuance of ADGM regulations, the Central Bank of UAE in 2017 promulgates a regulatory framework regarding the Electronic Payment System entailing all virtual currencies and transactions being restricted, setting a high alarm in UAE market. However, post receiving an unsatisfactory review, the governor of Central Bank clarified that the regulations would not be applicable to Cryptocurrency. In spite of this confirmation, UAE still awaits for legalized regulations which one may resort to in order to understand the validation of cryptocurrency or to seek a claim against frauds in virtual currency.

Crypto Fraud and Future

The dubious behaviour and presence of Cryptocurrency in the market make it treacherous for investors as it can turn out to be Ponzi scheme to steal money. The basic ideology behind Cryptographic money makes it arduous to prevent theft as any crypto asset is stolen cannot be traced and returned to the original investor. From past a decade, we have come across numerous hacks and scams in a crypto world wherein; Coin Check was the world's biggest crypto theft. Cryptocurrency is a bubble or a market; we are yet to confirm that stand. Nonetheless, it has offered the opportunity to billions of users' entrance to the financial market who otherwise did not even had a bank account as they fail to meet the relevant criteria to open a bank account. The current position of Cryptocurrency in UAE is grey, and the future as of now is colourless. Numerous nations have initiated to issue guidelines to control the buying and selling of Cryptocurrency and to prevent the unauthorized usage and avoid financial frauds.

Related Links


Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.


Client Testimonials

I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.

Raphael Lauria
Manager, FME General Trading

Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.

Zhuo Liu
Client

...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...

H.H. Sheikh Saeed Bin
Mohammed Hashir Al Maktoum

I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.

Luis Pozueco
Client

Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.

Bassam Yamout
Director, JM Metal Trading LCC

He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.

Philippe Delbecq
Client

Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.

British Client

Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.

Asma Mattar
Manager, Italian Style

Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.

Dr. Massimo Hakim
Chairman, Italian Style

I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.

Manish Gupta
Marketing Manager, Express Digital System

Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.

James Horsley
British Client

Comments

No comments found.

Leave a Comment

Your email address will not be published. Required fields are marked *

Want to know more?
Then talk to us.


Select your Language:

        

Main Menu

Zoom