The Central Bank of the United Arab Emirates (UAE) has clarified past statements about a prohibition on âvirtual currenciesâ, confirming that new rules released last month donât apply to bitcoin.
As reported by CoinDesk at the time, the UAE central bank released a digital payments framework on 1st January. That policy document included the stipulation that âall virtual currencies (and any transactions thereof) are prohibitedâ, prompting questions about both the definition of âvirtual currencyâ the central bank was relying on as well as the exact scope and nature of the ostensible prohibition.
New comments suggest that, at least for now, the central bank isnât taking any action on bitcoin or other digital currencies.
In a statement released to regional news service Gulf News, central bank governor Mubarak Al Mansouri said:
âThese regulations do not cover âvirtual currencyâ which is defined as any type of digital unit used as a medium of exchange, unit account, or a form of stored value. In this context, these regulations do not apply to bitcoin or other crypto â currencies, currency exchanges, or underlying technology such as blockchain.â
That said, the central bank indicated that the topic of digital currencies remains an open question â and one that could be subject to new rules in the future.
âThis area is currently under review by the Central Bank and new regulations will be issued as appropriate,â Al Mansouri remarked.
As can be expected, those working in the regionâs nascent digital currency ecosystem quickly praised the move.
âWeâre optimistic about the direction the Central Bank have been recently taking to support innovation in fintech in UAE,â Ola Doudin, CEO of bitcoin exchange service BitOasis, told CoinDesk.
Image via Shutterstock
