Cryptocurrency Regulation: Comparative Perspective UAE/EU

Date: Thursday 19 January 2023
Time: 2:00 pm – 7:00 pm
Venue: Robert De Sorbon Amphitheatre, Sorbonne University Abu Dhabi Campus

In partnership with:

Abstract:

The United Arab Emirates, in the perspective of the post-oil era, dreams of being a key place for crypto-currencies, however legally the local organisation, on these issues in particular, is not simple. Federal organisation with free zones (DIFC and ADGM) within the various emirates which are as many layers of regulation, with different regulators, to be reconciled and articulated to establish themselves locally… to the point that for some players, the paradise, notably tax, that the emirates represent, could turn into a regulatory purgatory!

Crypto-currencies, their regulation and the regulation of the FinTech sector in general, as well as the various applications of blockchain technology are all essential subjects that CEDAG has been analysing for years. CEDAG has followed the construction of the European regulation on digital finance up to the agreement reached in October 2022 on the MiCA Regulation, a regulatory framework that has not yet been finally adopted.

The comparative perspective on the regulation of cryptocurrencies is of real interest both to analyse and to be inspired by the choices made by the different legislators in the face of the objectives pursued regionally in Europe and in the Middle East. It is therefore appropriate to question these regulations: can the private regulations adopted within the DIFC and ADGM free zones offer the flexibility that the European framework is often criticised for lacking? At the time of the adoption of the MiCA regulation in an (almost) federal Europe, could the future text constitute an interesting source of inspiration for the UAE legislator? Could the European example constitute a relevant framework that could inspire local legislators concerned with attracting capital by balancing the interests between flexibility, to facilitate attractiveness, and security, to prevent operators from being reluctant to set up for fear of the consequences of possible instability… which is perhaps not pure science fiction if we take the example of the bankruptcy of FTX, which has led to the disappearance of other players in the sector.

The objective, beyond the theoretical analysis of the regulation of crypto-currencies, is also to allow the operators of this singular market to discuss the regulatory constraint or, on the contrary, the opportunity to have such a framework on a market without borders and where the actors, most often unregulated, are likely to lead an emerging economic sector to its loss.

For more information please contact: Prof Nathalie Braz nathalie.braz@sorbonne.ae