The Central Bank of the UAE (“CBUAE”) Large Value Payment Systems (“LVPS”) Regulation (the “Regulation”) (Link) came into force on the 10 February 2021. This Regulation was published alongside the Retail Payment System (“RPS”) regulation with the aim of promoting a robust financial infrastructure and building the essential framework for financial stability and consumer protection in the UAE.
This week, the Central Bank of UAE (CBUAE) released the Retail Payment Systems Regulation (RPS) (Regulation) (link) which governs RPS, defined to include systems which handle low-value, high volume payments such as cheques, credit transfers, direct debit, card payments, amongst other things. This regulation comes in consonance with the SVF regulations, the Crypto-Assets Guidelines and the Large Value Payment Systems Regulations. Together, these instruments indicate that UAE is moving quick to establish itself as a leader in blockchain, crypto and fintech. Here are the top 10 takeaways from the Regulation.
This week the Securities and Commodities Authority (SCA) released its ‘Administrative Decision No. (11) of 2021 concerning Guidance for Crypto Asset Regulations’ (link) (or Crypto Asset Guidance/ Guidance) which throws light on, and clarifies the application of the SCA’s Board of Directors’ Decision No. 23/Chairman of 2020 concerning Crypto Assets Activities Regulation (link) (or the Crypto Assets Regulation/ Regulation), which was released late last year.
In a ground-breaking move to address the rapid technological advancements of stored value products and services, the Central Bank of UAE has repealed and replaced the ‘Regulatory Framework for Stored Values and Electronic Payment Systems’ (2016) to implement the ‘Stored Value Facilities (SVF) Regulations’. This regulation is aimed at ensuring the secure and efficient governance of the digital payments industry and stored value facilities.
One of the many solutions makes a classification between different blockchains on the basis of permission levels for different categories of participants. In this regard, a blockchain technology can generally be divided into two broad categories: Public blockchains like Bitcoin and Ethereum and permissioned blockchains like Hyperledger, R3 Corda etc. Permissioned blockchains can be further grouped into two categories on the basis of the number of entities governing the system.
Today’s addresses the need of having a validly executed and legally recognised Will, in the UAE. Please view our informative, short video enclosed. By creating a solid foundation for your estate planning, including that of executing a last Will, future additions or changes to your family’s circumstances won’t feel as daunting when the time comes. After all, life never slows down and no-one is invincible. Through means of a Will, you can: TAKE CONTROL OF YOUR LIFE! HAVE YOUR SAY TO PROTECT YOUR FAMILY AT A TIME OF HEARTACHE. We, at KARM, will be happy to assist in advising & guiding you as to best give effect to your testamentary wishes. Please feel free to reach out to our team of professionals to set up a virtual consultation, at your convenience. We look forward to connecting with you.
On June 5th SEBI released a cirular to introduce a framework for “Regulatory Sandbox”. Under this sandbox framework, entities regulated by SEBI that shall grant certain facilities and flexibilities to experiment with FinTech solutions in a live environment and on limited set of real customers for a limited time frame. These features shall be fortified with necessary safeguards for investor protection and risk mitigation.
Some of the basic blockchain applications such as system of records and identity management is required by most large-scale organisations. Moreover, the blockchain is now being implemented to offer Software as a Service applications to enterprises. This is being done through providing services like tracking and traceability of products. Following this, J.P Morgan has introduced an enterprise version of the ethereum labelled as “Quorum” which has resolved concerns around privacy and scalability. Quorum is offered as a blockchain as a service offering. Ethereum has also innovated to address all issues which are being faced by enterprises and has formulated an Enterprise Ethereum Alliance (“EEA”) to work on further developments and satisfy all requirements of large-scale organisations.
On a fateful September morning the world woke up to the news of WeWork pulling the plug on its IPO. WeWork, the co-working unicorn startup, whose IPO was one of the highly anticipated public offerings of 2019 saw an abrupt drop in its valuation.
“For in reason, all government without the consent of the governed is the very definition of slavery.” - Jonathan Swift
The two poles of centralization and decentralization have been as old as the human civilization in itself. Capitalism & Socialism, Presidential and Parliamentarian are all the forms of centralization/ decentralization debate that have existed for times immemorial.
What are ‘Smart Contracts?’
When it comes to startups, a general perception is that it needs to be in a developed country where all the resources are available. In truth, that misses the point: startups can begin anywhere, and it's often the countries with the greatest needs that present the biggest opportunities.
The United Arab Emirates has been one of the few jurisdictions, which has been supportive of the technology. Recently the UAE Government announced the UAE Blockchain Strategy 2021 which aims at capitalising on blockchain technology to transform 50 per cent of government transactions into the blockchain platform by 2021. UAE also happens to be the only jurisdiction around the world to have four regulators acting as incubators to blockchain projects and start-ups.
Much has been spoken about the disruption and the innovation brought about by the cryptocurrencies and blockchain in general. But amongst other things, a new technology almost always disrupts and affects the conventional methods of managing a workforce.
First things first, let’s admit - starting-out is bold. While all of us have heard that most of the start-ups fail with varying percentages in different jurisdictions, there is always hope that your start-up won’t follow suit. As lawyers, this is what we hope for, for you.
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