On Monday, March 17, 2019, the United Arab Emirates Banks Federation (UBF) and the Abu Dhabi Global Market (ADGM) hosted a joint forum on digital currency assets and financial technology (fintech).
The event brought industry specialists together to talk about how blockchain technology and cryptocurrencies are revolutionizing the global financial sector. They also addressed the challenges and opportunities that these technologies and this industry present.
Developing Necessary Frameworks for the Crypto Industry
The forum discussed a number of important topics including ADGM’s regulations and supervisory approach to digital assets such as cryptocurrencies.
Included in this discussion was how financial regulators and banks can work together and develop a sound regulatory framework that addresses the risks for crypto market participants and businesses in the space.
The discussion also included talk about financial surveillance and management methods, which included talk about harnessing big data and machine learning to enhance these procedures.
Apart from discussing how to properly regulate, manage, and conduct surveillance on the financial markets, the forum recognized just how revolutionary blockchain technology could be for financial markets.
AbdulAziz Al-Ghurair, Chairman of UAE Banks Federation, said:
Given the rapid emergence of new FinTech such as cryptocurrencies and other crypto assets, it is essential that we develop frameworks and regulations that govern these technologies and developments.
UAE to Become a Blockchain and Fintech Hub?
The UAE is a very strong and stable nation financially with some of the largest and most powerful banks in the world. According to Al-Ghurair, he envisions the UAE as an international hub for finance and a strong advocate for adopting innovative fintech technology.
In the press release, Al-Ghurair said:
With aspirations to become one of the foremost international hubs for finance, we must keep up with the rapid technological changes taking place across the sector. Ensuring a robust monetary and financial market environment is critical to this, and can only be achieved by protecting consumer rights and safeguarding market integrity.
Agreeing with Al-Ghurair, Richard Teng, CEO of the Financial Services Regulatory Authority of ADGM, said they are pleased to partner with UBF in this forum and discuss the future and challenges of changing the banking industry.
Adding to this, Teng said:
This event highlighted the importance and power of collaboration between regulatory authorities and financial institutions in building the trust and commitment needed to introduce FinTech activities securely into the financial services sector.
It appears that the UAE Banks Federation sees the potential of blockchain technology in the fintech industry and does not plan to be left behind. The UBF and the ADGM are developing necessary regulatory frameworks for the cryptocurrency and fintech industry.
What do you think about the UAE’s take on cryptocurrencies and blockchain technology? Will they develop favorable regulations that foster innovation? Let us know what you think in the comment section below.
