A cryptocurrency banner in Davos, Switzerland. A World Economic Forum report shows the increasing acceptance of digital currencies poses challenges for capital markets, investors, regulators and tax authorities globally. Bloomberg
A cryptocurrency banner in Davos, Switzerland. A World Economic Forum report shows the increasing acceptance of digital currencies poses challenges for capital markets, investors, regulators and tax authorities globally. Bloomberg
A cryptocurrency banner in Davos, Switzerland. A World Economic Forum report shows the increasing acceptance of digital currencies poses challenges for capital markets, investors, regulators and tax a
A World Economic Forum report shows the increasing acceptance and decentralised nature of digital currencies pose unprecedented challenges for capital markets, investors, financial regulators and tax authorities globally.
Concerned about the elevated risk investors face, authorities have been stepping up cryptocurrency regulation. Watchers warn that more stringent crypto regulation may be just around the corner.
For crypto investors, it has become imperative to understand what regulation may look like and how to navigate a more regulated cryptosphere.
But first, let’s dive into why the market needs regulation.
Does crypto need regulation?
Crypto experts insist digital is the future of finance. Hence, the industry must be regulated in the same way as the traditional financial system.
“Within crypto, regulation can play a critical role to safeguard customer assets, protect investor interests and significantly limit cases of fraud,” saysJoseph Dallago, co-founder and chief executive of Rain Financial, which operates the Rain cryptocurrency exchange that is licensed by the Central Bank of Bahrain.
The decisions of governments to regulate crypto must be championed, says Nigel Green, chief executive and founder of deVere Group.
Digital currencies should be held to the same standards as the rest of the financial system, he adds.
Crypto has come of age and there is no greater proof of its mainstreaming than “the news that digital currencies are being brought into the regulatory tent in one of the world’s largest economies and most highly-regulated markets”, says Mr Green, citing the UK government’s recent decision to regulate the industry.
Since cryptocurrencies are set to have a bigger impact on the global financial system, “a strong regulatory framework will help protect investors, tackle criminality and reduce the potential possibility of disrupting financial stability”, he says.
Greater transparency and regulation of crypto will also “help attract the businesses of tomorrow — and the jobs they create — as effective regulation gives them the confidence they need to think and invest long-term”, Mr Green adds.
In March last year, Dubai adopted the Dubai Virtual Asset Regulation Law, which aims to create an advanced legal framework to protect investors and provide international standards for virtual asset industry governance that promotes responsible business growth in the emirate.
It also established the Virtual Asset Regulatory Authority (Vara) as an independent body to regulate the sector throughout the emirate, including special development zones and free zones, but excluding the Dubai International Financial Centre.
Last September, the Financial Services Regulatory Authority (FSRA), the regulator of Abu Dhabi's financial hub, the Abu Dhabi Global Market (ADGM), published guiding principles on its approach to virtual asset regulation and supervision to outline its expectations for the asset class and service providers in the sector.
Investors are eager to know whether cryptocurrency should be regulated like securities or with new regulations specifically for digital currencies.
There is a pathway for cryptocurrency regulation through either central banks or capital market authorities, says Mr Dallago.
“This model can create a regulatory umbrella for use cases of crypto that go beyond securitisation of assets, investments or technological advances,” he says.
“We see great potential for synergies also between crypto asset regulations and capital market regulations.”
Governments’ decision to regulate crypto must be championed. Digital currencies should be held to the same standards as the rest of the financial system
Nigel Green, chief executive and founder, deVere Group
This model works in the GCC, specifically in Bahrain through the Central Bank of Bahrain and in the UAE's ADGM through the FSRA, Mr Dallago says.
Mr Green says new rules must be written and implemented for the crypto market, a relatively new asset class built on fast-changing technology.
“Older regulations, designed for other asset classes in the last century, are likely not adequate,” he says.
He also singles out meme coins, such as Dogecoin and Shiba Inu, for regulatory action.
“Regulation would also help crack down on useless meme tokens, which undermine the credibility of the crypto sector,” he says.
“More robust, enforceable regulation is the answer for crypto.”
He places particular emphasis on the importance of regulating crypto exchanges.
It is argued that if crypto transactions flowed through regulated exchanges, it would be much easier to thwart and prevent potential wrongdoing, such as money laundering, crypto hacks and tax evasion.
Regulation will help crack down on useless meme tokens such as Dogecoin, which undermine the credibility of the crypto sector, experts say. Reuters
Regulation should first tackle concerns surrounding anti-money laundering and counter terrorist financing, says Mr Dallago.
Crypto analysts also emphasise the need for regulators to join hands with leading industry participants to ensure new rules don’t stifle innovation.
Navigating the crypto regulation
Regulation of crypto is a matter of when, not if. The sooner investors accept it, the better.
Many fraudulent activities in the crypto space last year could have been avoided if there was regulatory oversight of crypto asset platforms in unregulated markets, says Mr Dallago.
“Greater crypto regulation would not impede investment in this space, but rather encourage it as there are regulatory mechanisms to safeguard investor interests and protect their capital,” he adds.
After a year of crypto company collapses, accusations of top-level fraud and prison sentences for wrongdoing, there’s no denying that greater scrutiny would help protect investors, says Mr Green.
“Regulation could provide a potential long-term, sustainable economic boost to those countries which introduce it, as crypto is widely regarded as the future of finance,” he adds.
Crypto watchers, though, warn of increased market volatility as new rules are rolled out.
A shakeout of the market, as a result, would see many unproven coins with little utility fall to the ground.
Investors should also expect a large-scale industry consolidation when crypto regulation becomes a reality.
Therefore, crypto assets that have strong developer communities, security safeguards and infrastructure are the safest bets.
Is regulation bad for crypto prices?
Many investors mistakenly believe greater regulatory scrutiny is harmful for crypto prices.
Mr Dallago says growing regulation is a positive sign for crypto.
“As the industry grows, we are seeing more and more regulators jumping on the ship to regulate it,” he says.
“This means, beneath the rhetoric, governments recognise the value of this technology and the benefits it can unlock for their constituents,” he adds.
However, for regulation to be a positive force for the industry, it should focus on key risks without crimping customer access or adoption.
Growing regulatory oversight is the mark of a maturing industry.
“Regulation will further shore up the crypto sector and instil trust and confidence among investors,” says Mr Green.
Cryptocurrencies — in pictures
The crypto market, which includes currencies such as Bitcoin, pictured, has lost $2 trillion of its value in six months. Unsplash
The price of Ethereum, the second largest cryptocurrency by market size, has fallen by 70 per cent this year. Investors and analysts are watching to see if it will dip below $1,000. Unsplash
Dogecoin, supported by Elon Musk, is about 90 per cent down from May last year, yet it is outperforming Bitcoin and Ethereum in the current crash. Unsplash
The government of El Salvador has invested $105 million in Bitcoin. President Nayib Bukele's embrace of the cryptocurrency as legal tender is being questioned as the market crashes. Getty
Changpeng Zhao, founder of crypto exchange giant Binance, has compared the current market turmoil to the dotcom bubble of the early 2000s. Still, the company is aggressively pursuing licensing in international jurisdictions and introducing new products. Getty
Tether is the biggest issuer of stablecoins, a type of cryptocurrency pegged to a traditionally stable asset like the US dollar. Most stablecoins are meant to maintain a constant price of $1 and are backed by real reserve funds, making it easy to convert crypto investments into cash. But Tether's financial statements show that may not be true, leaving the issuer and its investors vulnerable. Unsplash
The recent crypto crash can in part be attributed to the collapse of TerraUSD, a stablecoin pegged to the US dollar through algorithms and linked to a "sister" cryptocurrency named Luna. When the price of Luna plummeted, TerraUSD also fell, creating a “death spiral” to practically zero for both coins. Unsplash
On June 12 crypto lender Celsius Network said it had paused customer withdrawals, saying it needed “to stabilise liquidity and operations”. Investors are still waiting, with no signs that the current meltdown will let up. Getty
A regulated crypto industry will attract more institutional investors — including pension funds, mutual funds, investment banks, commercial trusts and hedge funds — as well as individual investors.
“This will have a beneficial impact on the price trajectory longer term,” says Mr Green.
Regulation is key to creating an environment for crypto that adheres to robust standards, safeguards customers’ interests and creates a platform for the private sector to grow.
“All of this will ultimately reflect upwards on price as adoption increases and use-cases for crypto materialise,” Mr Dallago adds.
Three tips from La Perle's performers
1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.
2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.
3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
What are the GCSE grade equivalents?
Grade 9 = above an A*
Grade 8 = between grades A* and A
Grade 7 = grade A
Grade 6 = just above a grade B
Grade 5 = between grades B and C
Grade 4 = grade C
Grade 3 = between grades D and E
Grade 2 = between grades E and F
Grade 1 = between grades F and G
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.
The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.
The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.
About RuPay
A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank
RuPay process payments between banks and merchants for purchases made with credit or debit cards
It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.
In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments
The name blends two words rupee and payment
Some advantages of the network include lower processing fees and transaction costs
Both matches at ICC Academy, Dubai. Admission is free.
1st match: Friday, 2pm
2nd match: Saturday, 2pm
UAE squad: Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Rameez Shahzad, Amjad Gul, CP Rizwan, Mohammed Boota, Abdul Shakoor, Ahmed Raza, Imran Haider, Sultan Ahmed, Zahoor Khan, Amir Hayat
USA squad: Saurabh Netravalkar (captain), Jaskaran Malhotra, Elmore Hutchinson, Aaron Jones, Nosthush Kenjige, Ali Khan, Jannisar Khan, Xavier Marshall, Monank Patel, Timil Patel, Roy Silva, Jessy Singh, Steven Taylor, Hayden Walsh
Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”
Holiday destination: “I like Paris very much, it’s a city very close to my heart.”
Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”
Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”
The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at. Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti withCoastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.
Key findings of Jenkins report
Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Straightforward ways to reduce sugar in your family's diet
Ban fruit juice and sodas
Eat a hearty breakfast that contains fats and wholegrains, such as peanut butter on multigrain toast or full-fat plain yoghurt with whole fruit and nuts, to avoid the need for a 10am snack
Give young children plain yoghurt with whole fruits mashed into it
Reduce the number of cakes, biscuits and sweets. Reserve them for a treat
Don’t eat dessert every day
Make your own smoothies. Always use the whole fruit to maintain the benefit of its fibre content and don’t add any sweeteners
Always go for natural whole foods over processed, packaged foods. Ask yourself would your grandmother have eaten it?
Read food labels if you really do feel the need to buy processed food
