The Middle East, Africa and Asia Cryptocurrency and Blockchain Association (MEAACBA) has announced plans to establish a regulatory committee to launch systems that provide stronger oversight of the cryptocurrency industry.
MEAACBA’s Committee of Regulators will be made up of key regulators from the regions covered by the organization, digital media company Unlock News Desk reported on Jan. 12.
MEAACBA is a non-profit organization focused on innovation, education and coordination of participants in the cryptocurrency and blockchain ecosystem, and recent events in the sector have highlighted the need to provide proper regulation and education to cryptocurrency investors.
FTX collapsed in early November 2022 after a report by CoinDesk highlighted potential solvency and liquidity issues with sister trading company Alameda Research.
MEAACBA Chairman Jehanzeb Awan stated that industry players should help the public understand the opportunities and risks associated with cryptocurrency investments:
“The importance of comprehensive regulation to reduce regulatory arbitrage is key to mitigating the impact of recent events and restoring confidence in the industry.”
Commenting on the establishment of the Committee of Regulators, Awan said there is a need for coordination between regulators in government agencies and industry bodies to “create a coherent regulatory framework that goes beyond PL/TMM and addresses issues of doing business.”
The MEAACBA chairman added that the industry needs to educate the public so that they have a complete understanding of the sector, Awan explained that it is the responsibility of the entire industry to develop, innovate and make services and products safer for organizations and individuals through better regulation. .
The announcement of the new MEAACBA committee comes as the UAE Cabinet published federal-level regulation on virtual assets and virtual asset service providers. The new law, which will add another layer of oversight to the country’s cryptocurrency sector, will take effect in January.