* Migrants face high fees, long wait times to send money
* UAE is second-largest global sender of remittances
* Regulations on crypto assets still needed, experts say (Adds MidChains quote pars 22-23)
DUBAI, Aug 3 (Thomson Reuters Foundation) – Every month, 24-year-old parking attendant Ramesh Giri waits outside a money transfer office in Dubai to send $600 in cash to support his parents and two brothers in Nepal.
He dreads the routine, which costs him up to $7 each time and is keeping him from saving enough to fulfil his aspiration of becoming a restaurateur – but that could all change in the weeks ahead.
Dubai and the rest of the United Arab Emirates (UAE) is moving closer to opening licensed cryptocurrency exchanges, a step that could boost financial inclusion for the millions of expatriates who make up most of the region’s workforce.
Using online wallets, migrants could one day be able to send remittances home with smaller fees – or none at all – and within minutes, skipping the long waits in the Gulf’s heat and humidity.
“It’s free,” said Giri, who has been learning about cryptocurrencies and, along with the speed and savings, sees the added potential of letting him keep track of his finances more easily on his smartphone.
“I hope it can help me see what’s happening with my money and be able to save – because I can’t right now,” he told the Thomson Reuters Foundation. ‘NO THRESHOLD’
According to the World Bank, about 1.7 billion adults around the world did not have bank accounts as of 2017 – more than a quarter of them in India, Indonesia, Pakistan and Bangladesh.
Many of those countries are among the top senders of migrant workers to the Gulf, where they work in construction, the hospitality industry or domestic work to send money back home to their families.
Government data show that out of the UAE’s population of more than 9 million, nearly 80% are expats.
Last year, the region sent $43 billion in remittances, making it the world’s second-highest sender after the United States, according to the Global Knowledge Partnership on Migration and Development (KNOMAD).
The global think tank said the remittance industry makes up about 12% of the Emirates’ gross domestic product.
The UAE’s path towards digitising the industry began last year, when its Securities and Commodities Authority stipulated that anyone offering crypto assets in the Emirates must be formally licensed and comply with a range of anti-money laundering, cybersecurity and data protection laws.
So far, six companies have qualified under the regulations to create crypto exchanges, with two reaching the first stages of going live.
One of those, MidChains, is a crypto asset trading platform based in Abu Dhabi and is preparing to launch for trading.
Technically, the platform will be open to everyone. “There is no earnings threshold,” said MidChains co-founder and chief executive officer Basil Al Askari.