Industry leaders in Dubai commented on how the fiasco will affect the United Arab Emirates’ emerging crypto hub as the FTX contagion spreads to various sectors of the global crypto ecosystem (UAE), as reported by Cointelegraph.
According to Cointelegraph, different professionals shared their opinions on how the collapse of the FTX exchange will impact Dubai and the UAE’s crypto landscape, ranging from stricter regulations to better projects leading the way.
“With the misuse of funds or limited disclosures by FTX, these licensing authorities now need to deep dive into the technology. Mere financial documents submission won’t be enough, continuous and real-time monitoring of these platforms might be one of the ways forward,” Kokila Alagh, founder and CEO KARM Legal Consultants, told Cointelegraph.
Cointelegraph further noted that one of the first exchanges to receive approval from the Dubai Virtual Asset Regulatory Authority (VARA), a body in charge of overseeing virtual asset service providers looking to operate locally, was the FTX exchange. The FTX exchange received approval in July to move forward with testing and operations under the Minimum Viable Product (MVP) programme.
The approvals for FTX MENA, the local counterpart to the FTX exchange, have recently been revoked by VARA due to the circumstances surrounding the FTX exchange. The regulator further confirmed that no clients have yet been exposed and that the entity has not yet received approval to onboard clients, Cointelegraph further stated.
(With insights from Cointelegraph)