Dubai’s financial watchdog has appealed to regulators worldwide to increase cooperation and prevent the manipulation of loopholes in cryptocurrency regulations. Elizabeth Wallace, an associate director at the Dubai Financial Services Authority (DFSA), revealed that the agency plans to revise the existing regulations on cryptocurrency tokens, which it plans to roll out later this year.
During an online conference, Wallace expressed concern that the unscrupulous entities operating within the cryptocurrency industry capitalise on gaps within regulatory frameworks, especially considering the vast activities that fall under one organisation. She emphasised that there needs to be improved communication and collaboration between regulatory bodies to address these challenges effectively.
Globally, regulatory agencies continue to develop and refine their cryptocurrency regulatory frameworks. Dubai and Hong Kong are seeking investments in the cryptocurrency industry, while Singapore is mulling over placing restrictions on retail investor participation. US regulators have been closely scrutinising cryptocurrency companies since last year’s collapse of the digital asset exchange FTX and the market’s significant downturn.
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