The United Arab Emirates is clamping down on crimes like money laundering, under-invoicing, and fraud by launching a blockchain-enabled trade finance platform dubbed “UAE Trade Connect.”
Telecom giant Etisalat has combined forces with the consortium of seven leading local banks such as the First Abu Dhabi Bank in rolling out the platform powered by blockchain. More banks are expected to sign up.
It took two years for the initiative to come to fruition and it included six months of various trials.
Zulqarnain Javaid, an Etisalat official, said that UAE Trade Connect will be a game-changer for the trading finance space.
Fraud detection expected to be better
While the platform is primarily for the detection of fraud, the promoters also expect it to evolve into something that will have the ability to handle trade-based money laundering or sanctions-busting as well as e-invoicing at a later date.
Javaid said that UAE Trade Connect has the capacity to handle bank guarantees, letters of credit, and bills of lading, which required working closely with the governments, Custom authorities, ports and other related agencies.
Continuing support for crypto sector
The United Arab Emirates is steadily showing its support for the blockchain and crypto market and has made a lot of efforts so far.
For instance, crypto businesses were granted the liberty of operation in Dubai Multi-Commodities Centre (DMCC) Free Zone last month, following the Memorandum of Understanding between DMCC and the Securities and Commodities Authority (SCA).
The agreement was intended to promote growth and development in this particular sector by bringing the leading blockchain and cryptographic technologies of the world to the bustling Gulf metropolis.
This, along with the launch of the blockchain-powered platform, shows that the UAE is embracing the potentials of the crypto market and how this can boost the economy of the emirate state to become a powerhouse in global digital currency trading.
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