Lt-Gen Dhahi Khalfan Tamim of the Dubai Police predicted with a recent panel discussion that electronic money will soon replace cash in on the United Arab Emirates. There remains an established concern among authorities in the market that a a shortage of community awareness exposes digital currency users to fraud, piracy and ties to money laundering. Experts over the panel are pushing for those formation of any supreme national committee to formulate a legal framework for those use of digital currencies, as per the Emirates Blockchain Strategy.
Fraud Concerns Spark Dialogue at the Future of Electronic Money
The Dubai Police told the Khaleej Times on Sunday likely currently investigating a Dh300 million international fraud case from the use of digital currency. However, it is unlikely that concerns surrounding crypto-related criminality will minimize the growing public attention towards crypto in the United Arab Emirates.
At the recent panel, Lt-Gen Dhahi Khalfan Tamim, deputy chairman belonging to the Dubai Police and head of general peace of mind in Dubai, noted that there is no guaranteed types of protecting investors from piracy and fraud. Tamim seen that this has turned into a major trigger of concern for governing officials worldwide.
“Investigations prove that gangs can use digital currency in suspicious financial transactions like money laundering, drug trafficking and funding of terrorist operations,” said Tamim.
Despite this, Tamim stated he thinks electronic money will replace cash. He believes that as long as it’s untraceable, governments will almost allways be worried about digital currency.
Dr. Saeed Al Dhaheri, chairman from the Dubai SmartWorld, argued that United Arab Emirates should function as a first nation to discover regulations for monitoring electronic currency. He cited data that 56 percent of digital foreign exchange companies were closed within 4 months of launching after being seen as fraudulent.
“For each one successful digital transaction, there’s five failed currencies,” said Al Dhaheri.
Earlier this month, the United Arab Emirates Securities and Commodities Authority approved a draft of regulations geared toward Initial Coin Offerings.
“The Board of Directors, having reviewed a work on the best international practices in connection with this, has issued a directive that procedures for trading digital token must be regulated,” read a genuine press release. “The blueprint developed by the SCA carries a set of mechanisms with regard to an integrated project to digital securities and commodities.”