Prominent Saudi economist Ihsan Buhulaiga has called on the Gulf Cooperation Council (GCC) countries to develop unified cryptocurrency regulations. The fragmented approach to cryptocurrencies in the region raises concerns among experts.
Current Cryptocurrency Situation in GCC
Ihsan Buhulaiga, a former member of Saudi Arabia’s Shura Council, emphasized the need for GCC countries to formulate coordinated policies to regulate cryptocurrencies. Without this, traders might relocate their investments to countries with more favorable regulations, like the UAE or Bahrain. Currently, Saudi Arabia has banned cryptocurrencies, while the UAE has enacted policies to regulate their use.
Concerns and Expert Warnings
The debate over cryptocurrencies in Saudi Arabia has intensified. Abdul Rahman bin Nahi warns that the instability of cryptocurrencies could harm the economy and conflict with Islamic financial principles focused on transparency and fairness. There's also a noted risk to global efforts to combat money laundering and terrorist financing posed by cryptocurrencies.
UAE's Role in the Crypto Industry
The UAE continues to solidify its position as a global center for the crypto industry. Dubai has recently been recognized as the top global crypto business hub for 2024, bolstered by transparent legal frameworks and tax conditions, including zero capital gains tax and a competitive corporate tax rate.
Given the growing importance of cryptocurrencies in the global economy, GCC countries should explore establishing a unified regulatory mechanism to adapt to changes and support economic stability.
