UAE Central Bank Governor: Bitcoin ‘Easily Used’ for Money Laundering

23. October 2017.

UAE Central Bank Governor: Bitcoin ‘Easily Used’ for Money Laundering

The head of the central bank for the United Arab Emirates struck a critical tone toward bitcoin, according to the area’s official news service.

Emirates News Agency reports that, speaking to the press, governor Mubarak Rashed Al Mansouri criticized the lack of supervision around bitcoin and claimed that it facilitates money laundering and terrorism financing. He also reportedly said that, to date, the central bank has not moved to offer licenses to any cryptocurrency businesses operating in the UAE.

“Some nations have announced that they are not using bitcoin, and consequently its value sharply plummeted. In addition, it can be easily used in money laundering and in funding terror activities,” he was quoted as saying.

Critical words aside, it’s not clear whether Al Mansouri’s words will turn into action.

Back in February, the central bank chief said that there were no immediate plans to impose new restrictions on cryptocurrencies. However, Al Mansouri indicated that this was an area that’s under study – echoing moves by a number of central banks worldwide – and that new regulations could be forthcoming.

“This area is currently under review by the Central Bank and new regulations will be issued as appropriate,” Al Mansouri said in February.

Last month, regional news sources reported that the institution’s work was nearing completion and that new rules remain a possibility.

Dubai skyline image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

Published at Tue, 24 Oct 2017 18:10:23 +0000

We will be happy to hear your thoughts

Leave a reply

Register New Account
Login to
Reset Password