The United Arab Emirates (UAE), one of the world’s biggest cryptocurrency-friendly jurisdictions, has took the baton to developing a new economic front, and it’s tailor-made for the crypto market.
On December 20, the Dubai World Trade Centre (DWTC) stated that it plans to turn into a comprehensive zone and regulator for virtual assets and crypto, comprising of digital assets, goods, operators, and exchanges. This initiative comes as part of a bigger objective of Dubai’s government to attract new economic sectors and expand the business market in the country.
“The World Trade Center will deliver and oversee a new world-class regulatory framework of Virtual Asset legislative and enforcement policies,” the statement read.
Binance CEO Changpeng Zhao, who allegedly bought his first house in Dubai this October, has shown significant interest in UAE’s aspirations to lay the foundations for the crypto sector. He was among the first to send his remarks on DWTC recent announcement.
» Dubai World Trade Centre to become comprehensive zone and regulator for virtual assets and Crypto https://t.co/Ndr6GDcJ4u— CZ 🔶 Binance (@cz_binance) December 20, 2021
Actions taken so far in 2021
DWTC will be working in tandem with the private sector and relevant entities to impose rigorous standards for investor protection, anti-money laundering (AML), counter-terrorist financing (CFT) compliance, and cross-border deal flow tracing, the Dubai Government Media Office said.
Newsbtc also noted that the Dubai Financial Services Authority had announced their intents to set up a crypto regulatory framework all the way back in January, as part of the 2021 business plan.
In September, the UAE Securities and Commissions Authority signed an agreement with the Dubai World Trade Centre Authority (DWTCA), which allowed the DWTCA to license and allow financial activities in crypto assets.
A month after this, a Dubai free zone DIFC, Dubai’s state-owned financial free zone and the Middle East’s major finance centre, released the first part of a regulatory framework for digital tokens.
How Dubai Became a Supportive Ecosystem
- Dubai was the destination that hosted the first ever CryptoExpo, CED2021.
- The free zones set up in Dubai and Abu Dhabi have also implemented policies and transparent frameworks to encourage innovation and entrepreneurship in the crypto world, facilitating it’s growth.
- On the non-fungible tokens’ front, UAE’s postal operator even issued NFT stamps on December 2, to commemorate the country’s 50th National Day.