Dubai is one of the most advanced countries in the world. The cryptocurrency sector is no exception. Dubai is one the countries that is cryptocurrency “friendly” and is embracing the technology of blockchain.
However, the risks associated with altcoins are rising. The police in Dubai warned the community that users and investors can expect fraud, money laundering and piracy. According to assistant commander of the Dubai police, the community is not well aware of the risks associated with the digital coins.
Dubai has long had an ambitious mission to turn the country into an e-friendly, business and tourist world center. At the heart of this center will be blockchain, as the government is intended to run entirely on blockchain by 2020.
However, in a panel discussion on cryptocurrencies, experts suggested that a special committee should be formed in order to regulate altcoins and the risks associated with them. While the long-term vision of Dubai is to be pro-crypto and pro-blockchain, educating of the community is of primary importance as of now.
Another proposed solution was the creation of a state-backed digital coin, or the so called stablecoins. These are cryptocurrencies, but regulated by the government. The ultimate goal of creating UAE state-backed coin is to stop illegal activities such as financing of terrorism and money laundering via the use of digital coins.