UAE cryptocurrency updates you may have missed this week

Within just a matter of months, the public perception of cryptocurrencies, such as >Bitcoin and Ripple, has gone from that of an untraceable currency loved by dark web drug dealers to a potential get-rich-quick investment opportunity that everyone has an opinion on. 

Across the internet, it seems as though all everyone is talking about is investing in Bitcoin (BTC) and other >cryptocurrencies such as Ripple (XRP) and Ethereum (ETH).

This is also the case in the UAE, where several things have happened this week which may get you excited about the future of these blockchain technology-based >digital currencies. 

Let's take a look at this week's updates coming out of two of the Gulf's major financial hubs, Abu Dhabi and Dubai:

The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) is preparing a set of regulations for cryptocurrencies, Initial Coins Offerings (ICOs) and cryptocurrency exchanges, according to an official announcement published on Sunday.

While developing the regulations, FSRA intends to cooperate with relevant qualified institutions and individuals involved in the cryptocurrency industry and the financial regulator did not specify when the regulations are expected to be released.

In the announcement ADGM acknowledges the global demand for digital currencies, stating that "virtual currencies, although not legal tender, are gaining interests globally as a medium of exchange for goods and services".

On Tuesday, Dubai-based gold trader Regal RA DMCC became the first company in the Middle East to be awarded a license by the Dubai Multi Commodities Centre (DMCC) to trade in cryptocurrencies, Bloomberg reported. 

The license allows the company to store Bitcoin, Ethereum, and other alternatives to the best-known digital currencies in a vault located in the DMCC headquarters. The vault will have no connection to a network and physical devices are fully insured for the crypto-commodities market value against theft, hacking or natural disaster. 

"DMCC's crypto-commodities license is for proprietary trading in crypto-commodities only. No initial coin offerings are permitted and no establishment of an exchange is permitted under this license," a DMCC spokesperson said.

On Monday, Sharjah Police arrested a man who allegedly sold 2 million dirhams worth of Bitcoins fraudulently in what is believed to be the first Bitcoin scam in the UAE, according to Gulf News.

An Indian resident reported the incident to Sharjah Police after the Pakistani suspect took money from him in return for Bitcoins, but never completed the transaction. After successfully trading in Bitcoin online, the Indian man was given the suspect's contact details and the two met in a cafe at a mall in Sharjah. 

"We were having coffee when I handed him a bag containing the money. He pretended that he was making the online transfer, then excused himself to go outside the mall due to a weak internet connection. But he never returned," said the Indian man during police questioning.

He said he called the suspect several times, but his phone was switched off. Subsequently, police initiated an investigation and managed to identify and locate the suspect. He was arrested at his apartment in Sharjah, where most of the money was also found.

As it looks to bring the cost of transactions down for its customers, UAE Exchange, one of the region's biggest money exchange houses, entered into an agreement with U.S. blockchain startup Ripple to facilitate real-time cross-border remittance payments, according to CoinDesk.

"The early adoption of this game-changing technology allows us to offer a competitive service, as it will have an impact on the speed and cost of cross-border transactions," said Promoth Manghat, the Chief Executive of UAE Exchange Group, in a statement on Sunday.

The blockchain is an electronic transaction-processing and archive system that allows parties to track information in a secure network without the need for third-party verification. 

Banks, exchange houses and other financial services companies are increasingly looking to adopt emerging technologies, such as blockchain, to cut the costs of doing business in a competitive market.

The UAE Exchange is the latest firm to sign on with Ripple, which has already announced partnerships with firms like LianLian, Santander UK, IDT Corporation, Mercury FX, Abu Dhabi National Bank, and MoneyGram in recent weeks.

Between March 28-29, more than 6000 techies will gather in Dubai for the latest in entrepreneurship, digital, fintech, and future tech. 

STEP Money will tackle the most relevant topics in financial technology, including blockchain, cryptocurrency, and payments. In addition, it will feature talks, panels, workshops, roundtables, and exhibitions on the latest in financial technology.

Speakers such as Ripple's Sagar Sarbhai, CoinDesk's Noelle Acheson, RAK Bank's Sara Grinstead, and many others will take the stage at the conference. 

Don't miss this year's STEP Conference, the most experiential tech festival in 2018. Get your tickets here.