Regulating digital currencies in the Emirate of Dubai: a comparative legislative review

The usage of digital currencies remains controversial in terms of their legitimacy and the provisions of legislative guarantees, prompting legislators in the United Arab Emirates (UAE) and in the Emirate of Dubai to seek appropriate legislative solutions. While legitimacy of digital currency under Islamic law remains an open question, trading in digital currencies continues in the face of a host of different types of risks promoting the legislature to adopt the Law No. (4) of 2022 Regulating Digital Assets in the Emirate of Dubai. Based on the comparative analysis of legal and regulatory frameworks in the UAE, UK and USA, this article argues that the Emirate of Dubai has adopted a clear position on recognition of digital currencies and provided clear rules for mitigating the problems of assigning responsibility when companies authorised to practice in this field encounter speculations or become victims of criminal activities. This is a significant regulatory move at the time when many countries were reluctant to accept digital currencies and implement necessary regulatory frameworks for their usage. The regulation introduced in Dubai may be implemented throughout UAE and other countries, especially Muslim countries, may learn from Dubai’s the experiences of regulations of digital currency.