Abu Dhabi’s Financial Services Regulatory Authority (FSRA)is developing and considering a framework to regulate and supervise virtual currency activity.
The FSRA issued its first regulatory guide in October, which states that virtual currencies are considered commodities therefore the derivative trading will be regulated under Financial Services and Markets Regulations, however, spot trading will not.
The also advised consumers of virtual currencies to take caution when making large investments and trading due to their price volatility. They also warned of high chances of money laundering, terrorist financing risks and other cyber financial crimes.
Although virtual currencies like Bitcoin are not considered legal tender, the FSRA recognized that they are gaining global interest as a medium of exchange and investment.
They also said that while virtual currencies do not necessarily fit into regulatory classifications, they welcome engagement with those involved in this industry and intend to work closely with relevant professional entities.