Gold trader gets Dubai li­cence to trade and store cryp­tocur­ren­cies

Daily Mirror (Sri Lanka) - - FOREIGN -

Gold trader Re­gal RA DMCC has be­come the first com­pany in the Mid­dle East to be awarded a li­cence by the Dubai Multi Com­modi­ties Cen­tre (DMCC) to trade in cryp­tocur­ren­cies.

The li­cence al­lows the com­pany to store bit­coin, ethereum and other al­ter­na­tives to the best-known dig­i­tal cur­ren­cies in a vault lo­cated in the head­quar­ters of the com­modi­ties free zone, DMCC said in a state­ment on Tues­day.

The vault will have no con­nec­tion to a net­work and phys­i­cal de­vices are fully in­sured for the cryp­to­com­modi­ties mar­ket value against theft, hack­ing or nat­u­ral dis­as­ter, it said. Crypto-com­modi­ties are those that trade in bit­coin.

Cy­ber theft is seen as a ma­jor risk for bit­coin trad­ing, high­lighted by last month’s heist of about US $ 530 mil­lion from a Tokyo-based ex­change, a theft ri­valling Mt. Gox’s as one of the big­gest ever for dig­i­tal cur­rency. There have been in­creas­ingly loud warn­ings around the world about the dan­gers of in­vest­ing in cryp­tocur­ren­cies, which re­main largely out­side the reg­u­la­tory net.

How­ever, Re­gal RA DMCC’S an­nounce­ment came as the reg­u­la­tor of Abu Dhabi’s in­ter­na­tional fi­nan­cial cen­tre said this week it could cre­ate rules for ex­changes han­dling vir­tual cur­ren­cies, in a sign that author­i­ties in the United Arab Emi­rates may al­low trade in cryp­tocur­ren­cies to de­velop.

Re­gal RA DMCC is a sub­sidiary of Re­gal As­sets, an al­ter­na­tive as­set firm which has of­fices in the United States, Canada and the United Arab Emi­rates.

Dubai is a ma­jor hub for gold trad­ing, thanks to its prox­im­ity to the world’s largest gold con­sumer, In­dia.

“At the heart of DMCC’S long-term strate­gic growth plan is the use of tech­nol­ogy and in­no­va­tion to dis­rupt and con­nect new mar­kets, in­dus­tries and cus­tomers,” said Ahmed Bin Su­layem, ex­ec­u­tive chair­man, DMCC.

Else­where in the Gulf, many reg­u­la­tors are wary of cryp­tocur­ren­cies. The Saudi Ara­bian cen­tral bank has ad­vised peo­ple not to trade bit­coin, and last week, Qatar’s cen­tral bank told banks not to deal in any way with cryp­tocur­ren­cies.

On Mon­day, the Euro­pean Union’s bank­ing, se­cu­ri­ties and in­surance watch­dogs warned that vir­tual cur­ren­cies such as bit­coin have shown clear signs of a pric­ing bub­ble and con­sumers could lose all their money.

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