While countries are working towards incorporating crypto and developing regulations for them, the Dubai administration has taken a different approach. Not only is the country looking to develop crypto regulations and legalize them, but they are also wooing crypto investors, companies around the world to set up operations.
Moreover, for the past couple of months, many companies in the crypto world have started to set up their offices and provide services in Dubai.
According to the announcement from Dubai Media Office, the Dubai World Trade Centre (DWTC) will become a comprehensive zone and regulator for crypto and its affiliated products.
It’s no secret that crypto has gained a lot of traction this year. Not only countries are taking it seriously, but many of them have changed their stance towards the technology and find it potentially promising. Although there are a couple of countries still apprehensive about technology due to its use in nefarious activities, general consensus regarding it is good.
Taking advantage of this, the Dubai administration is looking to develop a standalone crypto hub that will regulate and define guidelines for it in the region. This crypto hub will work with the private sector, taking cues from them in order to create an environment attracting crypto companies in the future.
DWTC will focus on providing an optimal environment for the sector and providing sufficient security standards to protect investors as well as companies residing in the industry.
In their announcement, DWTC stated:
“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.“
CEO of Binance, Changpeng Zhao congratulated DWTC and celebrated it in the crypto community. Besides this, he has shown interest in the crypto ecosystem in the country. Also, he bought his first home in Dubai about 2 months ago.
Not only the Dubai administration is working to support the crypto development, but UAE has also stepped in as well. Both are working for the local economy to get the benefits of blockchain technology as well as non-fungible tokens (NFTs). Also, in January, the Dubai Financial Services Authority planned to set up a crypto regulatory framework.