Crypto Exchange Works With Regulators to Develop Legal Frameworks for Arab States

Following the statement by Saudi Arabia declaring cryptocurrency illegal, the largest crypto exchange in the Middle East and North Africa is working with regulators across the region to develop crypto regulations. Bitoasis confirmed its platform is unaffected by the Saudi Arabian crypto stance.

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Bitoasis Working With Regulators

Dubai-based cryptocurrency exchange Bitoasis has revealed that it is working with the regulators from the Gulf Cooperation Council (GCC) “to develop regulatory frameworks in light of Saudi Arabia’s ban,” Arabian Business reported on Thursday. According to its website, the exchange is currently present in UAE, Kuwait, Bahrain, Oman and Saudi Arabia.

The GCC is a regional intergovernmental political and economic union consisting of all Arab states of the Persian Gulf except Iraq. Its member states are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

The CEO of Bitoasis, Ola Doudin, described:

As a pioneer in the industry, we are working closely with regulators in a number of our key markets across the GCC to develop and comply with the necessary regulatory framework…Regulations are absolutely fundamental. They are essential to grow and formalise the industry, while minimising risks on customers.

Response to Statement by Saudi Arabia

On August 12, the Saudi Arabian “standing committee for awareness on dealing in unauthorized securities activities in the foreign exchange market” issued a statement warning that “unauthorized virtual currencies are illegal inside the kingdom of Saudi Arabia.” This committee is headed by the country’s Capital Market Authority, Ministry of Interior, Ministry of Media, Ministry of Commerce and Investment and the Saudi Arabian Monetary Authority.

The statement reads:

The committee assured that virtual currency including, for example, but not limited to, bitcoins are illegal in the kingdom and no parties or individuals are licensed for such practices.

Referring to the statement by Saudi Arabian authorities, Bitoasis commented, “the recent adverse announcement on digital asset trading in Saudi Arabia highlights the necessity for a clear and comprehensive regulatory framework to build confidence at the highest level.”

Citing that cryptocurrencies and blockchain technology “are the future of money,” the exchange’s CEO was quoted explaining, “this fast-growing industry is at its early stage and regulations are currently being discussed and developed in every part of the world, including this region.” She elaborated:

As a whole, our region is progressive and quick to adapt to new technologies that can create more efficient, competitive, and smarter economies. Regulatory frameworks will affirm digital assets’ status as a reality in today’s world.

Bitoasis also confirmed that its “platform is still open to customers to safely and securely trade digital assets across the Middle East.”

What do you think of Bitoasis helping to develop crypto regulatory frameworks for the Arab states? Let us know in the comments section below.

Images courtesy of Shutterstock and Bitoasis.

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