Dubai: The Crypto Capital of the World?

Many of the most well-known brands in the cryptocurrency business have opened up shop in Dubai in an effort to help the city realize its goal of being the crypto capital of the world. As an increasing number of nations adopt cryptocurrencies, Dubai has ratcheted up the competition. Is Dubai going to become the next cryptocurrency hub?
Dubai’s VARA crypto trip

The United Arab Emirates (UAE) has the goal of creating an ecosystem that is highly desirable for Web3 firms and investors.

According to the announcement made by the government of the UAE, VARA would be in charge of regulating, governance, and licensing of cryptocurrencies, NFTs, and other virtual assets. The Prime Minister of the United Arab Emirates wrote,

“We gave our stamp of approval to the virtual assets law and commissioned the formation of the Virtual Assets Regulatory Authority.” A significant achievement for the UAE in this sector of the industry. The Authority will collaborate with other affiliated bodies to ensure the safety and openness of the investment process.

The VARA is responsible for regulating the issuing of new crypto tokens, supervising and controlling trade in virtual assets, ensuring that robust protection criteria are met, and monitoring transactions. In addition to this, VARA will be in charge of overseeing virtual asset custody, management services, exchange services, virtual asset platforms, and transfers of virtual assets.

Activities involving cryptography are considered illegal if they are not authorized by VARA. Digital asset traders must be in Dubai.
The Virtual Asset Regulatory Authority of Dubai has awarded Binance with a license (VARA).

Binance is now authorized to conduct business in the United Arab Emirates thanks to this license.

Advertisement

https://t.co/bqeMe1T54z

16 March 2022

The cryptocurrency community in Dubai has expanded since the law’s adoption. Recently, virtual asset licenses were granted to both Binance and FTX. The Media Office of the Dubai World Trade Centre made the announcement that it would become a cryptocurrency zone in December of 2017.

In March, the Bybit team relocated from Singapore to Dubai. Another cryptocurrency exchange based in Singapore, Crypto.com, has been granted preliminary approval to commence operations in Dubai. According to Kris Marszalek, one of the co-founders of Crypto.com,

We are overjoyed to be able to provide new goods and services in a sector of the market that places a premium on regulation and compliance.
Why is Gulf City seeing a cryptocurrency boom?

According to Amrit Dhami, a Thematic Analyst at GlobalData, the United Arab Emirates’ cryptocurrency policy focuses more on monitoring its development than placing restrictions on it. The United Arab Emirates (UAE) would be able to attract crypto enterprises if it adopts mainstream cryptoassets and works to expand the local crypto sector. It was her explanation that:

“Local use of cryptocurrency has begun in the UAE. YallaMarket is now accepting bitcoin, and the company is mulling over whether or not to pay employees in cryptocurrency. Acceptance of virtual assets was likely aided by the consent of governments around the world. Recruiters may be able to draw from a pool of keen local talent that is knowledgeable with crypto.

Because of the economic climate in the emirate, Ralf Glabischnig, founder and board member of the Swiss crypto center CV Labs, forecast that the sector will “grow quicker than anywhere else.” he said

Advertisement

“When beginning a new industry, talent is absolutely necessary. In Dubai, there were a lot of really smart people staying.

The Chief Executive Officer of the Dubai Blockchain Centre, Dr. Marwan Al Zahrouni, stated that free zones in the United Arab Emirates have developed a framework that will allow cryptocurrency entrepreneurs to set up exchanges while also protecting customers. Zahrouni:

“Before these past five years, visitors to Dubai weren’t coming for the Bitcoin industry… We are willing to consider reasonable proposals to alter regulations.”
The number of followers grows.

PwC’s head of cryptocurrency, Henri Arslanian, left the company on Thursday to launch a digital asset fund in Dubai with an initial capitalization of $75 million. Arslanian’s new investment vehicle, Nine Blocks Capital Management, has been granted provisional regulatory permission in Dubai. The former chief executive officer of PwC chose the United Arab Emirates as the location for his new fund since the country does not have a “Tier-One” licensing environment or regulatory restrictions.

CoinMENA has been granted a provisional license by Dubai’s VARA, making this our third such license in just more than a year since the company’s founding.
#Regulation #of #Cryptocurrency #in #Dubai pic.twitter.com/lXX0Dk9Lrz

This past month, the Virtual Assets Regulatory Authority (VARA) granted a provisional virtual assets license to the Sharia-compliant digital asset market CoinMENA. As Europe and the United States continue to liken digital assets to the “Wild West,” the UAE’s script is rapidly being rewritten. In the past few months, the United Arab Emirates (UAE) has issued more than 30 crypto exchange licenses and introduced new regulations.

Advertisement