Bitcoin Regulation: Abu Dhabi Financial Regulator Considers Cryptocurrency Framework

The regulator for Abu Dhabi’s international financial center is considering embracive regulations for the cryptocurrency industry, a move that could see exchanges and intermediaries move into the financial zone.

In an announcement on Sunday, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market said it is currently reviewing the development of a regulatory framework with industry firms and relevant authorities.

If established, the regulatory move would establish the international financial sector as friendlier shores for cryptocurrency exchanges and firms.

The regulator said it is:

“[R]eviewing and considering the development of a robust, risk-appropriate regulatory framework to regulate and supervise activities of virtual currency exchanges and intermediaries. In considering such a framework, the FSRA intends to consult and work closely with industry participants and relevant professional bodies.”

The development comes within months of guidelines released by the Abu Dhabi government for cryptocurrencies and ICOs in the capital of the United Arab Emirates (UAE). In October, Abu Dhabi’s financial markets regulator ruled out a “one size fits all” regulatory approach to the sector, separating ICOs as securities and cryptocurrencies as commodities.

It’s a marked turn of events for the development of the sector in the region after bitcoin ducked a prohibitive ban by the UAE’s central bank a year ago. Yesterday’s announcement follows a public warning on investments risks in ICOs by UAE’s Securities and Commodities Authority (SCA), the capital’s financial markets watchdog.

In its announcement, the FSRA also touched on the advent of cryptocurrencies as a medium of exchange. Friendly regulations could see the use of cryptocurrencies in payments, if only within the international financial center of over 40 companies.

It said:

“The FSRA notes that virtual currencies, although not legal tender, are gaining interest globally as a medium of exchange for goods and services.”

Meanwhile, the central banks of the UAE and Saudi Arabia are jointly working on the development of a cryptocurrency that could soon see cross-border transactions using a blockchain-based cryptographic token. Elsewhere in the region, the likes of Dubai is exploring the use of blockchain technology in sweeping measures in areas including the government, a state cryptocurrency, a citywide payments system and even its airport.

Republican Senate Candidate Accepts The Largest Single Bitcoin Donation in Federal Election History

Missouri Republican candidate, Austin Petersen, the former Libertarian, has received 24 bitcoin donations so far in his campaign for Senate – the largest of which, valued at $4,500, is officially the largest single Bitcoin donation ever accepted by a US politician according to the Federal Election Commission.

According to the Federal Election Commission, Senate Republican candidate, Austin Petersen, received a donation worth 0.284 of a Bitcoin – which at the time of exchange was valued at $4,500 in US dollars. This is the single biggest bitcoin donation in US political history. It also opens the debate about cryptocurrencies, political donations and transparency.

Petersen’s campaign aide stated:

“I think it goes without saying we’re going to see a lot more of this in terms of campaign contributions and campaign financing. Austin is personally a fan of competition in the marketplace, even when it comes to our currency. With the rise of cryptocurrencies like bitcoin, it was a no-brainer for us to use those.”

Bitcoin – A New Political Currency?
This new milestone now cements Bitcoin, and cryptocurrency assets, as a new means of increasing campaign contributions through alternative digital currency donations. The Missouri-based Republican Senate candidate received 24 bitcoin donations, totalling $9,700.

However, this isn’t the first-time cryptocurrencies have made an appearance within the realm of campaign contributions. Rand Paul, during his somewhat pensive 2016 Presidential Campaign, accepted Bitcoin. Other congressional and Senate campaigns have also accepted Bitcoin, with Jared Polis in 2014 being the first congressional campaign to accept Bitcoin.

The Federal Election Commission has given guidance to voters, donors and campaign chiefs about the use of cryptocurrency assets – in a further move to help bolster their use within the campaign contribution arena of US politics.

Cryptocurrency: The Future of Political Campaign Contributions?
The reason this recent development is ‘newsworthy’ surrounds the matter of fact way it was reported. It is a purposeful sign that maturity has encroached upon the Bitcoin landscape, in that senior lawmakers now seem happy, across the political divide, to accept these non-government backed digital currencies to help improve campaign contribution and donor engagement.

As more and more people become crypto wealthy, as the investment class matures, there is a growing population of new crypto millionaires. This new cluster of wealth could become a well of possible future political donations for all political parties.

Some also argue that this could help further promote cryptocurrencies and blockchain technologies with lawmakers. As more politicians start to accept Bitcoin, the more the political class will start to become more pliable in regard to the crypto lobby’s overall demands in terms of public policy development and enactment.

However, this ‘largest ever’ Bitcoin donation represented less than 3 percent of Austin Petersen’s overall campaign donation total. The dollar, therefore, still reigns supreme in the context of party political contributions but Bitcoin could one day surpass the greenback in the pursuit of political influence.

News Source: https://ccn.com

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