UAEs crypto regulators must push for greater coordination: PwC

UAEs share in the global crypto market is around $25 billion transactions, and it has increased 500 per cent between July 2020 and June 2021. Regionally, the UAE ranks third by volume, behind Turkey which had $132 billion in transaction volumes, and close to Lebanon at $26 billion. Going forward, regulators will need to rely more on industry experts to formulate policies.

By collaborating with industry experts, fintechs, crypto firms, academics, consumer interest bodies, and subject matter experts, regulators can reduce their monitoring and enforcement costs and encourage greater cooperation and compliance to mutually agreed and set standards, said PwC. Self-regulation, is proposed as a complement to legislation, and not as a replacement, and requires the involvement and support of legislators for success.

The accounting firm said UAE will need to push for greater international harmonisation and cooperation with other jurisdictions to succeed. As brought out earlier, with reference to the IMF report calling for greater international coordination, the Sunrise issue and borderless nature of crypto can not only cause friction and misalignment but also make compliance difficult for firms, especially where extra-territorial treaties exist, said PwC.