UAE Central Bank Governor Warns Against Use of Cryptocurrencies

Mubarak Rashid al-Mansouri, Governor of United Arab Emirates (UAE) Central Bank has announced a warning to the public in using cryptocurrencies for exchange.

According to him, digital currencies can cause risks to the public regarding illegal activities such as money laundering and funding terrorist activities.

In late October 2017, al-Mansouri stated in his speech at the Islamic Financial Services Board Summit that, after the announcement of ban on Initial Coin Offerings (ICO) by several countries, the risk of trading cryptocurrencies is real as the sharp decline in their prices. Al-Mansouri said,

“The risks of trading in digital currencies have clearly appeared when the prices of digital currency fell sharply after some countries announced a ban on using initial coin offerings.”

Other regulators around the world are affected by the statement made by the UAE Central Bank governor in attempt to discourage the use of virtual currencies like Bitcoin and Ethereum. Meanwhile a few nations, have already issued a restriction on ICOs, which is a crowdfunding process using cryptocurrencies.

The UAE Central Bank has also stopped issuing licenses for the trading of virtual currencies in the country. Therefore, local services with exchange in cryptocurrency have been ceased. The Emirates Investment Bank’s head of asset management claimed that,

“The digital currencies are highly speculative and this is not backed by anything tangible.”

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