The United Arab Emirates is creating a new economic sphere made specifically for crypto. In an announcement made today by the Dubai Government Media Office, details of a new plan for a “crypto hub” in the global city, with its homebase to be set up in the Dubai World Trade Centre (DWTC).
According to the announcement, DWTC will serve as a comprehensive zone and regulator for virtual assets and crypto, as well as digital assets, financial products, and a host of facilities for blockchain operators and crypto exchanges.
These plans for the new crypto hub are strategically aligned with the Dubai Blockchain Strategy, an initiative launched in 2016 by Dubai’s Crown Prince, H.H. Sheikh Mohammed bin Rashid Al Maktoum. The announcement says that the Dubai World Trade Centre is set to create a “comprehensive ecosystem” that accelerate the growth of this progressive economic sector within the global city.
“The Dubai World Trade Centre will collaborate with the private sector and relevant entities in Dubai to create an attractive environment for the sector, and enforce rigorous standards for investor protection, Anti Money Laundering (AML), Combating the Financing of Terrorism (CFT) compliance and cross border deal flow tracing,” the Dubai Government Media Office stated.
According to Dubai’s Media Office, the move is a critical cornerstone in the global city’s prospects for digital transformation and the adoption of blockchain technologies such as those implemented in non-fungible tokens and cryptocurrencies. With a blockchain and crypto hub to be set with a legislative framework, the global city is well-positioned to open new crypto and blockchain businesses that would later play key roles in “facilitating and broadening cross-border operations and ecosystem innovation.”
In 2019, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) released a guide for the regulation of crypto assets. Earlier this year in January, Dubai’s financial regulator, the Dubai Financial Services Authority, which operates as the financial regulatory agency for the Dubai International Financial Centre (a special economic zone, or SEZ), announced plans of creating a crypto regulation framework that would allow it to oversee digital asset issuers and associated trading platforms.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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