Mubarak Rashid al-Mansouri, Central Bank Governor United Arab Emirates(UAE) warns to the public against the usage of virtual currencies as a mean of payment.
He entitles that digital currencies posture risks to the users as they can be used for such illegal acts. Seemingly, like funding terrorist activities and money laundering.
According to a source, al-Mansouri states that the risk of trading cryptocurrencies in the sharp decline their prices of a ban on ICOs.
He said at the Islamic Financial Services Board Summit in October 2017,
“The risks of trading in digital currencies have clearly appeared when the prices of digital currency fell sharply after some countries announces a ban on using initial coin offerings”.
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Efforts to control cryptocurrency use
The declaration made by the UAE Central Bank governor imitates the positions of, other regulators, globally. Therefore, hope to discourage the use of virtual currencies like Ethereum and Bitcoin. Meanwhile, few countries issue a ban on ICOs.
The Central bank UAE had rejected proposals to issues licenses for the trading of virtual currencies. Thus, they prohibites the cryptocurrency exchanges to offer their services locally.
The head of asset management at the Emirates Investment Bank claims that virtual currencies are highly speculative.
“The digital currencies are highly speculative and since this is not back by anything tangible”.