Conducted by a master's student at the University of Sharjah

A study recommends the necessity of issuing a federal law regulating the circulation of virtual currencies

Khalifa Al Hammadi: "The spread of virtual currency has raised questions about the legal rules to protect the rights of its dealers."

Citizen Khalifa Muhammad Al Hammadi, a master's student at the University of Sharjah, conducted a research entitled “The Legal Framework for Dealing with Virtual Currencies in the Emirates”, in which he emphasized the necessity of issuing a federal law regulating the circulation of virtual currencies and not contenting themselves with decisions and circulars as they are implementation standards, not legislative.

Al-Hammadi emphasized in his research that the topic of virtual currency trading appeared as a result of the tremendous development in the Internet and associated technologies, which began to take great interest in many countries, explaining that his research came as a result of the interest that was translated into the issuance of regulations in late 2020 related to the virtual currency, most notably "The special system for the activities of crypto assets", and after the spread of interest in them, it is necessary to put in place a system of law that will be applied to the circulation of those currencies and to organize the new system on the trading platforms. He pointed out that after research, investigation and conducting many studies, he reached the conclusion that the "system for the activities of crypto assets" has set up manifold technical and legal restrictions that the trading platforms are incapable of trading virtual currencies on, and they must be organized and restructured.

He pointed out the main reason that prompted him to conduct research or study because of the modernity of virtual currencies and the spread of dealing with them in the UAE, as they are available in the Internet environment, which raises the question about the legal rules that apply to this deal and how can the rights of dealers be protected.

He explained that one of the most important findings he had reached during his study was to provide a recommendation to the Emirati legislator to issue a federal law dealing with the regulation of virtual currencies, and not to be satisfied with decisions and circulars as they are implementation standards and not legislative.

Al-Hammadi also discussed in his research methods of obtaining and circulating virtual currency, then he touched upon the issue of civil protection for the parties to deal with by presenting the experiences of legislators in developed countries in terms of legislative terms related to virtual and legal currencies.

Follow our latest local and sports news, and the latest political and economic developments via Google news