Abu Dhabi: The head of the Abu Dhabi Global Market (ADGM), an international financial centre in the UAE capital, on Tuesday called cryptocurrencies “the way of the future” even as other regulators raise alarm bells on trading of the virtual currencies.
Ahmad Al Sayegh, chairman of the ADGM, said the financial centre is currently working to understand the cryptocurrency space before launching a platform for cryptocurrencies. He did not elaborate on what ADGM is planning to launch.
“We issued two guidances on cryptocurrencies, and we believe [they are] the way of the future. We are considering two exchanges at the moment. We’re working with them to make sure we can regulate... We’re trying to understand this space, figure out how to regulate within it, and then launch,” he said.
His comments come amid strong warnings and scepticism from regulators and institutional banks about cryptocurrencies both at local and international levels.
Earlier this month, the head of the UAE Central Bank warned against trading cryptocurrencies amid stronger volatility in the market.
“I think we have been very explicit that this is not approved by the central bank and we should be very careful. I mean, we have seen the fluctuations already, so, avoid,” said Mubarak Rashid Al Mansouri, governor of the UAE Central Bank.
Similarly, the Securities and Commodities Authority (SCA), the UAE’s markets regulator, issued a release to “raise the alarm about all digital, token-based fundraising activities or investment schemes,” referring to initial coin offerings.
In a speech at the Global Financial Markets Forum in Abu Dhabi, the ADGM’s Al Seyegh advocated for innovation in order to create a new generation of strong UAE-based companies.
He said that companies should be able to compete not just locally, but also internationally.
“For that, we need international rules. We need international regulations and we need international courts. We cannot just live within our bubble and expect to create global champions,” Al Sayegh said.
