How the Gulf states are fighting for an investors
Traditional exchanges don’t perceive cryptocurrency ones as competitors, and they are not ready for the transition to blockchain platforms. The participants of the 13 World Exchange Congress made this statement in Oman. Here in early March, participants discussed the problems of traditional exchanges, trading volumes, optimization of depositories and clearing centers, and a slowdown in the volume of trading.
Objectively, traditional stock exchanges keep up with their financial colleagues in the banking and insurance sectors for at least a few years but still ignore the real problems. Innovations in the stock market have only reached the use of cloud technologies. According to Paul McKeown, Senior Vice President of Market Technology Nasdaq (United States), the leading issue of implementing infrastructure technologies is security. Are cloud technologies sufficiently protected from the outside impact? How will their extension affect the speed of operations in the future?
On the other hand, panelists argued that without the new technologies, the further development of the stock market is impossible, and the cryptocurrency has already taken its place there. For example, on the website of the Nasdaq Stock Exchange, a large section is devoted to analytics and reviews of Ripple, Bitcoin, Monero.
As for the development of blockchain and cryptocurrency in the Gulf countries, we can say that the attitude towards them is rather positive. Both blockchain and cryptocurrencies are seen as mechanisms for working with investors.
According to Khalid Muhammad Al Zubair, head of Support Services OminvestOman (Oman International Development and Investment Co SAOG), the Gulf countries are becoming increasingly significant for global markets, as evidenced by Saudi Arabia's promise to invest billions in US infrastructure through cooperation with Blackstone and support to Softbank Fund.
Ahmed Saleh al-Marhoun, Director General of MSM, stressed the importance of investments in the securities industry and freedom of capital movement.
The neighbors of Oman — the UAE and Saudi Arabia play an essential role in the development of the cryptocurrency. They have made significant steps towards the development of blockchain technology, as well as the regulation of the cryptocurrency.
A year ago, the Central Bank of the UAE published a legislative framework considering the popularity of cryptocurrency in the country. Payment service providers are restricted from offering digital currency transactions. Anyway, private individuals and business still freely use cryptocurrency. Saudi Arabia recognizes that the market of cryptocurrency has not enough volume for serious regulation — you can operate the cryptocurrency without restrictions.
The situation with India and South Asia countries is somewhat complicated because cryptocurrencies are either wholly banned or have no legal status there. Neeraj Kulshrestha, Chief Business and Operations Officer of Bombay Stock Exchange has engaged in discussion with Midex Exchange representative Dmitry Machikhin and CIO EquiChain Steven King about the status of cryptocurrencies and their future.
India perceives it all as a big bubble, a threat to existing exchanges and ordinary citizens. According to Neeraj Kulshrestha, cryptocurrency exchanges are viewed by uninvolved experts as trading in the Forex market with its speculation and volatility.