Dubai has been the bustling center of e-commerce related development for some time now. And since China’s ban on cryptocurrencies as a whole, Dubai has been vying to be the next crypto capital for some time now.
While many will say that Dubai as a whole is very welcoming to all forms of digital currency and trading as a whole, there are some boundaries that it has managed to set. One of the most important ones happens to be the ban on privacy coins.
According to the new laws that the UAE has put forward following its crypto regulations, cryptocurrencies, with anonymity being their core selling point, do not have a place in the future capital of crypto.
Unveiling the New Regulations
The UAE has kept many of its crypto enthusiast citizens waiting for its long-awaited crypto regulations, which are quick to set authorization and licensing requirements for all companies looking to operate there.
Of course, these rules would apply to both virtual asset issuers and companies that want to operate from Dubai. And these regulations have a specific definition for assets like Monero that call themselves privacy cryptocurrencies, which are made to be untraceable.
According to the official definition by the new laws, it is a virtual asset that prevents all forms of tracking or tracing records of ownership. Records of ownership can often be found on public ledgers, which is what makes them so much easier to track and trace.
Therefore, any cryptocurrencies that make it more difficult for individuals to trace them or do not register themselves to the public ledgers, they will not be allowed in Dubai.
Not the Only country to implement these Rules
While these may seem too harsh for most individuals who are fans of cryptocurrencies, the truth of the matter is that it is not the only country to implement these rules.
Japan is another option that comes to mind that has a very mean streak when it comes to regulating cryptocurrencies. It has also taken steps to ensure that privacy tokens, or cryptocurrencies that block traceability, are prohibited.
Therefore, it will be able to control possible illicit activities that could happen as a result of people taking advantage of privacy tokens.
The EU joins Dubai and Japan
Along with Dubai and Japan both banning these types of cryptocurrencies, the EU is also looking into regulating them. While there is no concrete evidence that they will possibly outright ban these types of tokens, they will try to regulate them.
Of course, much like Dubai itself, the EU is also looking to attract crypto investors and firms to become hubs in their own right.