UAE Central Bank warns against the use of cryptocurrency including bitcoin


The UAE Central Bank on Monday warned about the risks of using cryptocurrency as a medium of exchange for now, amid mounting risks including high volatility, speculation and money laundering.

Speaking on the sidelines of the Islamic Financial Services Board’s Summit, Mubarak Rashid Al Mansouri, Governor of the Central Bank, said cryptocurrency do not go through official channels and cannot be monitored and controlled, thereby posing risks in case it is used to launder money or fund terrorist activities.

“The risks of trading in cryptocurrencies have clearly appeared when the prices of cryptocurrency fell sharply after some countries announced a ban on using initial coin offerings(ICO),” state-run news agency Wam quoted Al Mansouri as saying.

The central bank has not issued licence to allow trading of cryptocurrency in the local market, he added.
The statement comes after Bitcoin hit a record high of $6,148 on Saturday.

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