Prominent Saudi economist Ihsan Buhulaiga has called for the Gulf Cooperation Council (GCC) countries to develop a unified regulatory framework for cryptocurrencies. He emphasizes that without coordinated policies, cryptocurrency traders might relocate their investments to countries with more favorable regulations, such as the UAE or Bahrain.
Buhulaiga, a former member of Saudi Arabia's Shura Council, stresses the urgency of a regulatory roadmap for GCC nations. He notes that while Saudi Arabia generally prohibits the use of cryptocurrencies, other Gulf nations, like the UAE, have introduced regulatory measures to govern digital asset usage.
He further highlights that digital currencies are gaining traction worldwide, predicting continued growth due to U.S. President Donald Trump's pro-crypto policies, including the potential integration of digital assets into the Federal Reserve’s reserves.
Buhulaiga's call for a unified approach underscores the need for GCC countries to collaborate on crypto regulations, highlighting the disparity in policies across the region. He warns that without a coordinated framework, investors may seek opportunities in neighboring countries with more lenient regulations, potentially leading to regulatory arbitrage within the GCC.
This perspective aligns with broader discussions on the importance of harmonizing cryptocurrency regulations to ensure financial stability, prevent illicit activities, and foster innovation within the financial sector. A unified regulatory approach could enhance the GCC's position in the evolving digital economy, providing clear guidelines for investors and promoting regional economic integration.
As the global landscape of digital assets continues to evolve, the GCC's approach to cryptocurrency regulation will play a crucial role in shaping the region's financial future. Balancing innovation with risk management through a unified framework could position the GCC as a leader in the adoption and regulation of digital assets.