The United Arab Emirates (UAE) is emerging as one of the top global cryptocurrency-friendly ecosystems. As part of efforts to create a unique zone for crypto assets, the Dubai government has taken the initiative in supporting local crypto evolution and regulation.
The Dubai World Trade Centre (DWTC), UAE’S leading and largest government-owned event and exhibition venue, will become a comprehensive sector and cryptocurrency regulator. DWTC will also create an exclusive zone for virtual assets, such as operators, exchanges, products, and digital assets.
Whereas the Central Bank of UAE doesn’t accept or acknowledge cryptocurrencies, and Dirham stands to be the only legal ledger, free zones in Dubai and Abu Dhabi have instigated advanced frameworks motivating crypto entrepreneurs while laying out measures to protect consumers.
Dubai is expected to become a crypto hotspot
This move is a part of the desire by Dubai—an emirate of the United Arab Emirates Federation—to establish new economic sectors.
On Monday 20th December 2021, the Dubai Media Office said efforts are being made to attract new businesses, including cryptocurrencies.
As part of this drive, the DWTC is planning to develop a comprehensive ecosystem in collaboration with the private sector to develop an attractive environment for business.
The plan also aims to enforce rigorous measures and standards to protect investors, combat terrorism financing, anti-money laundering measures, track cross-border deals, and ensure compliance.
In September, the United Arab Emirates Securities and Commodities Authority, in collaboration with the Dubai World Trade Centre Authority, set a framework for allowing the DWTC to approve and license financial interests relating to cryptocurrency assets.
In October, Dubai International Financial Centre’s (DIFC) regulator, The Dubai Financial Services Authority, revealed its regulatory foundation for overseeing digital assets.
DIFC is a state-owned financial-free zone in Dubai and the major financial center for the Middle East.
Binance’s potential headquarters in Dubai
Following this announcement from the DWTC, Binance CEO, Changpeng Zhao, was one of the first people in the crypto industry to celebrate.
Apparently, Zhao is interested in setting up the company’s headquarters in Dubai. In fact, he purchased his first Dubai home in October and has been vocal on Twitter and interviews of his fondness for the Gulf Arab nation. He has also met key representatives of Dubai’s crypto industry.
As the Dubai authorities focus on working with the private sector in the crypto industry, a memorandum of understanding was signed with Binance, the largest global crypto exchange in terms of volume.
Binance is expected to share its experience in the crypto business with the DWTC administration.
Recently, Binance withdrew its license application in Singapore and said that it will also shut down its exchange operation in February 2022.
