UAE Central bank says No to cryptocurrencies but yes to Fintech office

The United Arab Emirates’ central bank will establish a Fintech office ‘in the near future’ to support financial innovation in the banking sector in coordination with other national authorities, its governor stated recently during Middle East Banking Forum in Abu Dhabi.  According to Mubarak Rashid Al Mansouri, “The aim of the FinTech Office will be to position the Central Bank as the coordinating authority, as the author of prudential market conduct regulatory requirements, and as an enabler and facilitator of FinTech activities in the UAE."

“For fintechs to flourish, they need regulatory acceptance, and if this regulatory acceptance is not present onshore, you are by default eliminating a big chunk of the country,” he added. Al-Mansouri said the central bank is not supportive of cryptocurrencies at this point, pointing out that they require further study. “It is a mandate of the FinTech Office to look into such matters and to coordinate with other central banks in the region,” he said.

Speaking at the event he stated, “I have recently seen a very interesting crime using cryptocurrency, and it’s really amazing how illicit or terror financing groups hide behind such technology. So there is no visibility on who is behind it. It has no store of value. You’ve seen the cryptocurrency yoyo… You cannot entrust your economy or your currency to such a mechanism,” he added.