Did UAE Central Bank Ban Crypto Payments? Irina Heaver Clarifies | The Web3 Talks

Summary

In this episode of Web Three Talks, hosts Ornella Hernandez and Stephen Bess interview crypto lawyer Arena Heer, based in Dubai. Heer, a Bitcoin enthusiast, discusses the dynamic and ever-changing landscape of crypto law, emphasizing the need for lawyers to be adaptable in a fast-paced industry. The conversation touches on the recent regulations by the UAE Central Bank, the implications for businesses, and the importance of distinguishing between good and bad actors in the crypto space. Heer also shares his personal journey with Bitcoin, rooted in his family's experience with a collapsing currency, and offers advice for regulators to consider the bigger picture and learn from past mistakes.

Takeaways

• 😀 Arena Heer, a crypto lawyer based in Dubai, expresses his preference for Bitcoin over Ethereum and identifies as a Bitcoin maximalist.
• 💼 Heer's daily routine involves staying updated on rapidly changing crypto laws across 60 jurisdictions and dealing with different regulators, indicating the dynamic nature of his work.
• 🌍 Heer's firm is involved in establishing legal entities in various crypto-friendly jurisdictions, emphasizing the global scope of his work.
• 📞 The crypto law practice requires constant communication with financial regulators and clients, often involving urgent relocations due to shifting legal landscapes.
• 🚫 The recent UAE Central Bank regulation on stable coins and the prohibition of virtual asset payments for goods and services within the UAE are highlighted as significant developments.
• 🔄 There is a 12-month grace period for the implementation of the clause prohibiting virtual asset payments in the UAE, allowing time for adjustments.
• 🤔 Heer raises concerns about the potential negative impacts of the new regulations on businesses, especially on the burgeoning AI and web3 sectors.
• 💡 Heer suggests that regulators should consider the bigger picture, learn from the mistakes of other jurisdictions, and seek clarification to avoid stifling innovation.
• 🚀 Heer encourages lawyers to consider crypto law due to its fast-paced and uncertain nature, which presents great career opportunities and financial returns.
• 🛑 The discussion touches on the challenges faced by regulators in balancing openness to innovation with the need to protect consumers and maintain financial stability.
• 📣 The best way to contact Arena Heer is through LinkedIn, and he warns against scams and impersonators on other social media platforms.

Q & A

What is the main topic of discussion in the 'Web Three Talks' video?

The main topic of discussion is the experience and insights of Arena, a crypto lawyer based in Dubai, on the crypto industry, regulations, and the implications of recent laws on crypto payments in the UAE.

What is Arena's stance on Bitcoin and Ethereum?

Arena identifies as a Bitcoin Maxi, indicating a preference for Bitcoin over Ethereum.

How does Arena describe the daily life of a crypto lawyer?

Arena describes the life of a crypto lawyer as dynamic and fast-paced, with constant changes in crypto laws and the need to stay updated and responsive to regulatory shifts across different jurisdictions.

What is the significance of the recent 'Payment Token Services Regulation' implemented by the UAE Central Bank?

The regulation is significant as it aims to license and regulate stablecoins within the UAE, preventing situations like the Luna incident and ensuring financial stability.

What is the current limitation on crypto payments for merchants and individuals in the UAE as per the new regulation?

The new regulation prohibits merchants and individuals from accepting virtual assets for goods and services in the course of business unless the virtual asset is a regulated Durham payment token, with a 12-month grace period for the implementation of this clause.

How does Arena's background influence her perspective on crypto?

Arena's background, having been born in a country that collapsed and witnessing the impact of currency devaluation on her family, makes her appreciate the decentralized nature of Bitcoin and the security it offers against such events.

What advice does Arena have for regulators in the crypto space?

Arena advises regulators to consider the larger picture, learn from the mistakes of other jurisdictions, and seek clarification on regulations to avoid stifling growth and innovation in the crypto space.

How does Arena view the role of stablecoins in the future of AI and web3?

Arena believes that stablecoins will play a crucial role in transactions between AI agents, emphasizing the importance of not prohibiting the technology that will be fundamental to the future of AI and web3.

What is the potential impact of the new regulation on businesses operating in the UAE?

The new regulation may impact businesses by restricting their ability to accept crypto payments, which could affect their operations and potentially hinder the growth of the web3 ecosystem in the UAE.

What precautions does Arena recommend for individuals and businesses to avoid scams in the crypto space?

Arena recommends verifying the authenticity of crypto personalities online, being cautious with social media accounts, and reaching out through professional networks like LinkedIn to avoid falling victim to scams and impersonators.

How can viewers get in touch with Arena for legal advice or services?

Viewers can get in touch with Arena through LinkedIn, where she and her team actively respond to messages, while being cautious of impersonators on other social media platforms.

Outlines

00:00

🌐 Introduction to Web 3 Talks with a Crypto Lawyer

The video script begins with an introduction to 'Web 3 Talks,' hosted by Ornella Hernandez and Stephen Bess, who welcome their guest, Arena, a crypto lawyer based in Dubai. The conversation lightens up with a discussion on Bitcoin versus Ethereum preferences, with Arena identifying as a Bitcoin enthusiast. The hosts and guest joke about the fast-paced and ever-changing nature of cryptocurrency law, hinting at the dynamic work environment that comes with the territory.

05:01

📚 The Dynamic Life of a Crypto Lawyer

Arena provides an insight into the daily life of a crypto lawyer, emphasizing the need for constant vigilance due to the rapidly evolving landscape of crypto regulations. The discussion highlights the global nature of the work, with the team dealing with multiple jurisdictions and regulators. Arena humorously describes the律师's response to regulatory changes, such as the swift relocation of clients from jurisdictions that become unfavorable, using the example of Malta's shift in stance towards blockchain in 2018.

10:02

🛡️ The Regulatory Landscape in the UAE for Cryptocurrency

The conversation shifts to discuss the regulatory environment in the UAE, particularly focusing on the recent 'Payment Token Services Regulation' issued by the UAE Central Bank. Arena explains the regulation's implications for stablecoins and the stipulation that prohibits merchants and individuals from accepting virtual assets for goods and services, unless they are regulated Dubai payment tokens. The summary also touches on Arena's concerns regarding a specific clause that could impact the industry and the 12-month grace period before the clause takes effect.

15:03

🚫 The Impact of Crypto Payment Bans and Economic Policies

This section delves into the potential consequences of banning crypto payments, especially in the context of the UAE's aspirations to become a web3 hub. Arena contrasts the UAE's economic policies with countries like Turkey, where crypto has been outlawed, and emphasizes the importance of open economic policies for attracting foreign investment and entrepreneurs. The summary also discusses the importance of regulatory clarity and the potential impact of restrictions on the burgeoning AI and crypto industries.

20:04

💡 Personal Stories and the Appeal for Regulatory Clarity

Arena shares a personal story about the collapse of the Soviet Union and the impact it had on his family, which fuels his passion for Bitcoin as a form of financial autonomy. The conversation then circles back to the need for regulatory clarity in the UAE, with Arena expressing hope for the central bank to provide clear guidelines on the application of the new regulations, especially concerning international transactions and the future of crypto payments in the country.

25:05

🤔 Advice for Regulators and the Importance of Learning from Past Mistakes

Arena offers advice for regulators, emphasizing the importance of considering the long-term implications of regulations and learning from the experiences of other jurisdictions. The summary captures the complexity of regulatory work and the need for regulators to balance between fostering innovation and preventing fraud. It also reflects on the challenges faced by regulators who often face criticism regardless of their actions.

📞 Final Thoughts and Contact Information

The script concludes with a warning about scams and impersonators on social media, urging viewers to be cautious and reach out through LinkedIn for genuine contact with Arena. The summary highlights the importance of secure communication channels and the prevalence of scams in the crypto industry, ending on a cautionary note about online safety.

Keywords

💡Web Three

Web Three, often referred to as Web 3.0, is a term used to describe the next generation of the internet, focusing on decentralization, blockchain technology, and user ownership of data. In the video, the theme revolves around discussions pertinent to this space, indicating the relevance of Web 3.0 in the context of cryptocurrency and blockchain.

💡Crypto Lawyer

A crypto lawyer is a legal professional who specializes in the legal aspects of cryptocurrency and blockchain technology. In the script, Arena, the guest, is a crypto lawyer based in Dubai, highlighting the importance of legal expertise in navigating the complex regulatory landscape of cryptocurrencies.

💡Bitcoin

Bitcoin is the first and most well-known cryptocurrency, created in 2009. It operates on a decentralized network and allows peer-to-peer transactions without the need for intermediaries. The video mentions Bitcoin as the preferred cryptocurrency by the host and guest, underlining its significance in the crypto community.

💡Ethereum

Ethereum is a blockchain platform that supports smart contracts and is the second-largest cryptocurrency by market capitalization. It is mentioned in the script as an alternative to Bitcoin, showcasing the ongoing debate about which cryptocurrency is superior or more viable in the market.

💡Satoshi

Satoshi Nakamoto is the pseudonym used by the unknown person or group who created Bitcoin. The script references Satoshi's vision of a decentralized financial system, free from intermediaries, which is a foundational principle of Bitcoin and many other cryptocurrencies.

💡Crypto Regulations

Crypto regulations refer to the legal frameworks and rules governing the use, trade, and issuance of cryptocurrencies. The video discusses the dynamic nature of these regulations, especially in the context of the UAE, emphasizing the need for constant vigilance and adaptability in the crypto industry.

💡Stablecoins

Stablecoins are cryptocurrencies designed to minimize price volatility by being pegged to a stable asset, often a fiat currency like the US dollar. The script mentions stablecoin regulations, particularly in the UAE, highlighting the efforts to control and legitimize these types of cryptocurrencies.

💡UAE Central Bank

The UAE Central Bank is the federal financial regulator responsible for banking, insurance, and monetary policy in the United Arab Emirates. The script discusses the bank's role in implementing crypto regulations, such as the Payment Token Services Regulation, which is a significant development in the UAE's approach to cryptocurrencies.

💡Blockchain

Blockchain is a decentralized, distributed ledger technology that underpins cryptocurrencies like Bitcoin and Ethereum. It allows for secure, transparent, and immutable record-keeping. The video script alludes to blockchain as a foundational technology for the future of finance and commerce.

💡NFT Marketplace

An NFT (non-fungible token) marketplace is a platform where digital assets, represented as tokens on a blockchain, are bought and sold. The script mentions the implications of crypto regulations on such marketplaces, particularly in the UAE, where the acceptance of virtual assets for goods and services is being regulated.

💡Decentralization

Decentralization is a core principle of blockchain technology and cryptocurrencies, aiming to distribute power and authority away from central entities. The script touches on the importance of decentralization in the context of financial systems, reflecting the broader theme of the video.

Highlights

Ornella Hernandez and Stephen Bess interview Arena Heer, a crypto lawyer based in Dubai.

Arena Heer identifies as a Bitcoin maximalist and discusses the preference for Bitcoin over Ethereum.

The interviewees joke about the fast-paced and ever-changing nature of crypto law.

Heer's firm operates across 60 jurisdictions, dealing with various crypto-friendly regulations.

The discussion highlights the need for crypto lawyers to be adaptable due to frequent regulatory changes.

Heer shares anecdotes about the rapid relocation of crypto businesses due to regulatory shifts.

The interview touches on the challenges and opportunities in the crypto law field.

Heer emphasizes the importance of understanding the implications of new regulations for the crypto industry.

The recent stable coin regulation by the UAE Central Bank is critiqued for its potential impact on business.

Heer explains the 12-month grace period for a specific clause in the new regulation affecting crypto payments.

The interview discusses the potential negative effects of banning crypto payments on the UAE's economy and reputation.

Heer's personal background and experience in the oil and gas industry before transitioning to crypto law.

The discussion of the importance of stablecoin regulations and the role they play in the crypto ecosystem.

Heer's perspective on the need for regulators to consider long-term implications and learn from past mistakes.

Advice for regulators on balancing openness and control in the crypto space to foster innovation.

Heer's caution about scams and frauds in the crypto industry and the importance of distinguishing between good and bad actors.

The interview concludes with Heer's advice on how to get in touch for legal services and a warning about impersonation scams.

Transcripts

[Music]

hey everyone welcome to the web three

talks my name is Ornella Hernandez and

I'm step Bess and today we are talking

to Arena he who is a crypto lawyer based

out of Dubai how are you I'm very good

thank you for having me guys so first

question because you're wearing an

orange Blazer BTC or eth what's your

preference coin of course I'm a Bitcoin

Maxi and what I thought I can't uh you

know of course it goes without saying

okay what about you Stephen BTC or eth

uh I've been told BTC I'm not I'm not

quite the expert but uh that's the one

that I have and that's the one that I'll

go with um as um Michael sailor says uh

people who don't save their excess

earnings in Bitcoin and they keep it in

Fiat there's a name for them

he calls them poor and I don't like

being poor so that is why it's BTC all

the way so buy more Bitcoin basically um

sure sure stocking SATs uh that's that's

what you should your should be number

one priority in life okay maybe number

two we should put a disclaimer that we

don't offer Financial advice no we do

not we do not no Arena as a lawyer I

want to get to know what your daytoday

looks like um waking up and panic um

panicking all day long uh calling cents

who are panicking and then going to bed

um with anxiety and panic of course I'm

joking but um working in crypto is uh

never a boring day definitely never have

a boring day my entire team are on their

toes myself we have to be on our toes

because crypto laws um are changing

literally every minute and my firm

practices across 60 jurisdictions we

deal with 60 different regulators and I

don't know how hundreds of regist when

we establishing legal entities is this

mostly in the Middle East and Europe or

which jurisdictions do you work in the

most um basically any jurisdiction that

is crypto-friendly so for example when

we're establishing Dow um uh legal

rappers we we we go for any jurisdiction

that will have us or a jurisdiction that

will be friendly for for that particular

purpose so no absolutely no uh limit as

to geography the limit is only how

friendly is that jurisdiction to was my

client's needs and purposes so um all

the way from Panama to Singapore um so

absolutely and we don't um we don't have

prejudices against certain country or

certain jurisdiction as long as they're

friendly for our needs and purposes and

and we can and the client can meet their

um requirements so going back to the day

um of of a crypto lawyer uh because

crypto laws changing so quickly and

there's so many jurisdiction that we

deal with we have to be on our to all

the time um we're picking up the phone

talking directly to financial Regulators

we're trying to come a client down um if

there is an issue we are quite often

relocating the clients from a

jurisdiction that was friendly 5 minutes

ago now it's not friendly anymore so we

have to literally pick up and go and

we've done that I don't know how many

times remember when Malta in 2018 um

announced themselves to be a blockchain

island hundreds of companies set up

there and then literally five minutes

later they all calling up and saying

move us to the Middle East move us to

the Yi right now pronto ASAP we need it

now so we've moved a lot of this uh

projects here and um at some point um it

was very easy to get banking for crypto

companies in the US so a lot of our

clients set up as is there not anymore

so when um when uh the current um

current US regime declared a war against

crypto companies who had to pack them up

and move them elsewhere it's quite

common in um in emerging industry

because there still um countries and

jurisdictions are still finding their

their place in uh so it's definitely not

boring so all the lawyers out there I

really uh encourage you to consider

Korean crypto law if you do not like

peace if you do not like uh sleeping U

you know 9 hours at at night and if you

seek excitement and also um any area

that is so uncertain and so fast moving

provides great career opportunities

provides great um Financial returns

because a crypto lawyer can charge a

premium on their expertise rather than a

corporate and Commercial lawyer because

we have at least 600 of them in in in in

GLT alone right where we are now so

definitely not boring so then how is it

like being a lawyer in the UAE then

where generally overall it is very

friendly um and it has a lot of

regulations for for crypto and crypto

companies but at the same time there was

a recent Outlaw of crypto payments for

merchants and individuals so maybe you

could go into that a little bit and just

explain what that implies exactly so

I've been I've been a lawyer in the UA

for over 16 years now I came in 2008

working for a national Oil Company

imagine or not um before crypto had I

had I had a career as well I was in

oiling gas I was in oil and gas for 13

years working for national oil companies

International oil companies so when I

came here in 2008 um where we are was

literally being built like J was

literally being built it was super

exciting it was nothing um and look at

you know look what UA has achieved uh

over this short period of time so I was

working for National oil companies

International oil companies um

negotiating deals between governments

all in oil and gas um um did a huge um

joint venture with badela it's um

Sovereign wealth fund it was um 11 a.

half billion doar job that we did in

Central Asia developing oil and gas

Fields so definitely not boring being a

lawyer in this part of the world because

it's growing so fast it's developing so

fast things happen so fast I mean um

Australia were firm uh if you want to

pass a legislation Parliament will be

discussing it for I don't know 15 years

till you die of old age here things

happen a bit too fast maybe and that's

why why um sometimes there might be

something a regulation implemented and

then maybe the consequences are not

forly ConEd and this is what I'm hoping

has happened with the payment services

uh payment token Services regulation

that has recently been um implemented by

the UA Central Bank so first of all what

is UI Central Bank it's a financial

regulator it's a federal financial

regulator in the UA we have two federal

financial Regulators Central Bank and

and security and commodity Authority SEC

you know you have sec in the US we have

Esa in um in the UA

so um Central Bank regulate Banking and

insurance industry so if you want to

open a bank in the UA you go and get a

license from the UA Central Bank or if

you pretending to be a bank without a

license Central Bank will come to you

and ask you know what is going on um

because you're not supposed to be

conducting banking services is without a

license um um Central Bank also

establishes monetary policy and they are

in charge of UA durum right so they

issued um payment token Services

regulation which is all fine basically

it is a stable coin regulation

regulating that stable coins are to be

licensed in the UA that we do not have

um another situation like Luna remember

when we had a $60 billion doar wiped out

of the industry $60 billion that was uh

you know that was really a huge blow to

the industry is it good to have stable

con regulation yes Europe has just

implemented uh one called MAA Singapore

is working on one or may be implemented

already um Hong Kong is working on one

this absolutely fine to have a stable

coin regulation because if you tell me

here's my coin and it's pegged to US

dollar one to one you hold my coin and

it will always be $1 you have to be

regulated because you're really acting

as a bank right because you're holding

US dollars in exchange for this token on

blockchain really close to banking uh

sort of sector so this has to do with

the UAE stable coin so but the uh

regulations that got passed they talk

about regulating foreign stable coins so

for example usdt usdc and issuing a

local Durham bagged stable coin so F so

good hasn't been there isn't doesn't

exist yet yeah there isn't one because

the regulations just got implemented two

weeks ago right there isn't one yet I'm

sure some very intelligent people are

working on that now so so far so good

the only thing I have an issue with and

um I had to cause a little bit of media

um noise around it because I'm one of

those um lawyers who actually read the

regulations in its entirety not just the

press release about the regulation and

get like oh we have stable cone

regulations that's amazing no I will

actually read it and um so one of the

there's one particular Clause that um

has caused a lot of concern for me

personally and the entire industry is

that no Merchant and no person can

accept virtual assets for their goods

and services in the uie in the course of

business so for example you're an

accountant sitting here bu a foreign

crypto company who has no bank account

because don't forget very few crypto

companies actually have bank accounts or

web free companies because we're in the

crypto economy right I'm outside of the

banking sector I'm My Own Bank thank you

very much I can send you $1 million

worth of bitcoin right now and we don't

have an intermediary that's how God

himself sat Nakamoto intended right so

um back to to the regulation so you

cannot accept virtual assets for your

goods and services unless that virtual

asset is a regulated Durham payment

token okay we don't have one yet right

however there is a 12 months pause on

this clause and this Clause will come

into force in 12 months time you know by

then we should have one I suppose

another except another uh um exception

in that Clause is you can accept

regulated foreign stable coins let's say

usdc usdt or any other stable coin that

gets regulated here in exchange for the

other virtual assets let's say you have

an nft Marketplace you're selling an nft

which is a virtual asset so you can sell

it for a regulated stable coin whichever

it becomes within the 12 months so what

are the implications there's no

implications for you if you're just

buying ethereum holding it on your water

and minding your own business there's no

implications for you implications for

you if you are running let's say an nft

Marketplace uh and within the uie you

cannot uh sell those nfts

anymore sorry in 12 months time you

won't be able to sell this nfts unless

that stable coin that you're selling it

for is a regulated stable coin let's say

usdt and usdc decide not to get

regulated in the U right what are your

options what are other stable coins are

there there's maybe 300 different stable

coins but but is there any liquidity not

that much I've also heard that turkey

has completely banned and outlawed

crypto all around yes and um that's a

good example of a country with a

struggling currency trying to maintain

control over their currency and that law

outlawing crypto usage and crypto

payments specifically says this is to

protect Turkish L which is fine but

imagine you're an individual living in

turkey and your savings are being ered

by crazy inflation the prices are

doubling tripling over the over the last

let's say few few months so what are you

going to do you will flee into an asset

which gives the protection for your

family well-being can be usdt can be

Bitcoin can be ethereum can be dollars

can be Euros for those who are not

crypto Savvy in the UA we do not have

this problem Durham is backed by US

dollar so we do not need to protect

their they keep the price controlled

pretty much at the same rate and that's

the role of the central bank right to

maintain these monetary controls and

what is beautiful about the UA you can

come in here you can bring your Capital

you can do business you can make money

and then you can take it back to your

country and purchase a house try getting

money out of turkey good luck to you try

getting money out of Russia try getting

money out of India try getting money out

of any other country in the world which

is so protection against their for their

currency you can't do that and you know

what entrepreneurs don't go to these

countries when was the last time you

heard the largest you know AI company or

web3 compan is opening opening an office

in Russia never why because good luck

getting out of there when have you heard

of a large conglomerate um opening uh

you know with all my love for the Indian

uh culture and people when have you

heard of a huge by bit moving to India

or binance moving to India you don't

hear these things they're moving to the

UAE why because of the leadership of the

UAE have very wise economic policies

have very wise entrepreneurship policies

supporting entrepreneurship you come

here you make money you can take this

money back buy a villa in uh Italy and

live your life right so does you Duram

need uh protectionist policies I don't

know I don't work for the central bank

but in my mind UA needs more open

economic policies to increase foreign

direct Investments to increase jobs to

increase more entrepreneurs moving to

the U do you know how many jobs are

being created by smmes more than 85% of

the jobs in the entire UA are created by

entrepreneurs like yourself like myself

smmes create all the jobs we're the

bloodline of the economy not because you

know I'm I'm so arrogant or anything

that is the fact 85% of the jobs are

created by entrepreneurs if you tell

entrepreneur that he or she cannot

contract in a currency that is

convenient for them because it is

commercially convenient what's next so

what's going to happen to your Baker

friend um my Baker friend is such a

Bitcoin Maxi yeah he will be doing it

despite okay any prohibition not because

he has no uh uh respect for the law is

because he has uh too much love for

Bitcoin I guess so how did your love for

Bitcoin come about in the first place um

or for crypto in general Bitcoin it

started with Bitcoin um I was born in a

country that

collapsed my parents were engineers in

Soviet Union um one day they woke up

with Soviet rubles becoming

nothing um there were days there where

they couldn't get

food um there were days where my mom

couldn't put dinner on the table and I

remember that very well because I was

thinking just yesterday we could go to a

shop and buy bread now we can't what do

you mean we have no bread as a

child that does so much to your um

understanding of the worlding it's very

traumatizing and I'm not saying oh look

at me I'm so poor uh such a traumatizing

childhood you know millions of people

live in countries where currency is

collapsing every day but as a child I

remember I I could not understand how

come my mom cannot go to a shop and buy

bread anymore I could not understand

that and then when my family fleed

Soviet Union with you know nothing to

their name and moved to Australia and

worked hard I kind of understood all

right if you have a good government you

have good government policies that's

good but you cannot always trust the

government fully m that's why when I

discovered Bitcoin in

201 okay super early then I was so

curious because I wanted to understand

what does that mean having peer-to-peer

money with no government involved with

no intermediary involved with no Bank

involved I was so curious to understand

so my first degree is economics and when

I um learned more about Bitcoin I was

like this will not work this will not

work because this is everything that

they told us at school is the it's

exactly the opposite of what they taught

us in school and being a

lawyer I thought no government will

allow for Bitcoin to exist I was very

wrong yeah what changed your mind I did

not understand the power of uh the power

of the network Bitcoin network is so big

and so powerful no government can shut

it down no government can stop it I can

send you as much Bitcoin as I have right

now and no government is here to tell

tell me that I cannot do that so and

that's how um you know when you went

through a traumatic event where you

couldn't understand why the government

literally took away everything your

family had you you sto thinking about I

should have a plan B I love my

government I trust my government but I

have a plan B thank you very much okay

and so what would you like to see more

of in this industry or or less of even

as a lawyer like what are your your

clients maybe worried about the most

um scams scams and frauds oh my God this

needs to be serious serious work put

into weeding the the bad apples from the

industry um Dubai is such a prosperous

place and it attracts a lot of really

good players that are trying to do good

creating jobs supporting the economy but

unfortunately it also attracts a lot of

bad players and um who we need to get

rid of how do we do that having good

stable coin regulations is fantastic

because we want to have good stable

coins um regulated fully backed

by Fiat it's fantastic um but outlawing

crypto payments that may impede business

transactions not only that also the um

the standing of the UA is the web three

Hub internationally yeah some people are

calling it the next Silicon Valley

absolutely and I would absolutely agree

with them I'm really looking forward to

clarifications from the central bank

that this Clause applies let's say only

to retail sales which is absolutely fine

we don't want a grandma to get scammed

when she goes to buy groceries which is

absolutely fine um or let's say um this

Clause does not apply to International

transactions which is fine so you can

still um receive usdt from your client

in Panama who has absolutely no other

means in transacting here which is

absolutely fine but there needs to be

clarification there must be

clarification there's another thing I

want to

mention um crypto payments all fine and

good think about AI an AI

agent providing services to another AI

agent how are they going to pay each

other by bank transfer by cbdc transfer

no they'll pay each other in sets

they'll pay each other in units of um

ethereum what is the smallest unit of

ethereum I think it's way they pay each

other in ways will they pay each other

in Bank transfers and cbdcs absolutely

not and uie is currently looking to

develop the largest AI um Hub in the

region and maybe even globally and I

truly believe they have everything you

need in order to do that willing

government supportive government so why

ban the technology that AI will be using

literally in you know very short period

of time why prohibit

it h very very interesting actually I

wanted to ask about advice for you know

Regulators more so than anything because

you obviously deal with Regulators from

about 60 different countries and you

deal with making sure that your clients

are uh compliant with those Regulators

as we see that you know if you open it

too much you allow a lot of room for the

problematic players if you close it too

much you stifle growth in the space do

you always have the right answer or do

you sort of just watch and see what

happens when it comes to Regulators

making policies a lot of The Regulators

are my clients so they pay me for my

advice for those so this is your you

that actually did this new

Outlaw God forbid absolutely not um

Central Bank is not my Cent okay um

unfortunately um I would love to call

I'm free um um so the advice for The

Regulators is consider the larger

picture always consider the larg picture

cuz it's absolutely could be okay and

well um to do something in the short

term but then what are the implications

but also learn from the mistakes of

other jurisdictions how many times has

China banned Bitcoin how many times

dozens of times dozens of times have

they succeeded no absolutely not so why

do something which was a complete

failure elsewhere question another

question uh look at Malta how many

millions of viers they spend in making

themselves a blockchain island have they

succeeded no it's a gambling Island I

think well it's a gambling Island

they've been a European gambling Island

but they wanted to Rebrand themselves as

a blockchain island maybe they didn't

have the best branding experts but learn

what m akes Malad dat for example and

let's not do that good idea look at Gary

gansler our favorite um Central Banker

in the world look what he's doing

probably don't do

that um so learn from the mistakes of

other jurisdictions because that would

speak louder than successes because you

do not really know what's where success

came from uh but the mistakes are a

little bit too obvious and of course

it's very easy for us to sit here and

teach The Regulators how to do what but

if you're a regulator put yourself in

the regulator in my defense for The

Regulators put yourself in the regulator

shoes whenever they do something they

get criticized if they don't do

something they get criticized if they

try to do something good like paying uh

like passing um stable coin regulation

which is good then they'll get somebody

like me who criticizes one tiny

Clause not criticizing but um asking for

clarification

to what thec for the indry so I feel bad

for The Regulators like I would not want

to be in no shoes because there'll be

somebody who's always saying oh you

should have done this you should have

done that so being a regulator is a very

very tough job for sure uh wouldn't want

to be in their shoes but they're in

their shoes so learning from the

mistakes of other Regulators is probably

one of the loudest learning lessons you

could receive

okay good advice and thank you for all

those clarifications Arena last question

what is the best way for our viewers to

get in touch with you to reach out or

use your services just um message me on

LinkedIn Arena heer it's very easy to

find me and my team looks at all the

messages and aners all the messages be

careful with Instagram and Twitter

there's about 600 Arena heas on Twitter

and about 500 Arena heers on Instagram

none of them are me they are um scammers

trying to SC people for money uh

pretending to be me U my mom gets 20

messages a day asking for one Bitcoin

from um a fake Arena hea account which

is really disturbing she's an old lady

every time she gets really scared um so

be careful with be careful online with

with the scammers and impersonators not

just me but you know everyone in the

industry be very careful yeah definitely

okay so LinkedIn is the best way

LinkedIn is the best way Arena heer okay

awesome everyone thank you for tuning in

to the web three talks reach out to if

you have any questions and also make

sure to check out other episodes of the

web 3 talks and the Mina surge podcast

see you guys later

[Music]

[Music]