UAE Central Bank regulation

26 / 10 / 2020

All transactions related to financial activities in the UAE are regulated by the Arab Central Bank. The Central Bank not only provides currency control, regulates banking activities, licenses financial institutions, acts as a bank and a regulatory authority for other banks and the government, but is also actively adapting to new technological requirements.

The Financial Services Act.

In 2018, the UAE government adopted amendments to the law on the activities of financial and banking institutions. Federal Law No. 14 of 2018 “On Central Bank and Regulation of Financial Services” entered into force and replaced the 1980 law. The new amendments began to fully regulate all financial transactions and services that financial and banking institutions provide in the UAE, as well as the regulation of the Central Bank and its functions.

Back in 2017, a regulatory framework appeared that affects the procedure for storing valuables and the functioning of electronic payment systems. These provisions apply to all the UAE, except for the DIFC (Dubai Financial Center) and ADGM (Abu Dhabi International Center) financial free zones. The main regulatory provisions were the definition of a single type of digital units that are used to carry out transactions, as a means of exchange and settlement. Also, in 2019, the Central Bank introduced amendments to the regulations, which opened up the opportunity for businessmen to engage in and develop crypto business in the UAE.

Due to the fact that UAE banks are actively integrating technological innovations, such as blockchain and etc., entrepreneurs from all over the world have the opportunity to trade virtual currencies on the BitOasis exchange without any special problems and restrictions. Also, it is worth noting that it has become easier to open accounts for companies engaged in crypto business or the implementation and development of blockchain technologies in the UAE.