The Central Bank of the UAE has warned against digital currency Bitcoin, calling it unofficial and lacking adequate supervision, the Emirates News Agency reported.
Speaking at the Islamic Financial Services Board Summit, UAE Central Bank Governor Mubarak Rashed Al Mansouri noted the sharp fall in bitcoin price driven by the decision of some countries not to use the digital currency.
He said:
"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."
Al Mansouri also said that no licenses have been issued for using bitcoin in the local market.
The recent warning comes after Al Mansouri said earlier this year that the central bank was reviewing digital currencies.
In January 2017, the central bank published a new regulatory framework for digital payments which prohibited “all Virtual Currencies (and any transactions thereof)”, Bitcoin Magazine reported. However, in a clarification given to Gulf News, Al Mansouri said that “these regulations do not cover ‘virtual currency,’ which is defined as any type of digital unit used as a medium of exchange, a unit of account, or a form of stored value. In this context, these regulations do not apply to bitcoin or other digital currencies, currency exchanges, or underlying technology such as blockchain,” and added that digital currencies are “currently under review by the Central Bank and new regulations will be issued as appropriate.”
