Dubai World Trade Center to Become New Crypto Zone and Virtual Assets Regulator https://ift.tt/3mlupKa

The Dubai government has recently declared that the Dubai World Trade Center (DWTC) will soon develop a cryptocurrency zone and regulate other virtual and encrypted assets, products, digital exchanges, and operators in Dubai.

According to a Monday statement by the Dubai media office, “Rigorous standards for investor protection, anti-money laundering, combating the financing of terrorism, compliance and cross border deal flow tracing,” will be developed.

This new initiative by the Dubai authorities is part of the most recent economic direction by the Arabian city in creating fresh economic sectors that will attract businesses amidst the rising regional economic competition in Dubai.

“The step continues to accelerate Dubai’s standing as a leading global center for business, trade, and technology, the World Trade Center will deliver and oversee a new world-class regulatory framework of Virtual Asset legislative and enforcement policies, will be critical to facilitating and broadening cross-border operations and ecosystem innovation to enable safe market adoption and growth for this sector in Dubai,” the official statement added.

Crypto-friendly Dubai

This is not the first time similar crypto-regulation moves have been made by the Dubai government this year.

Three months ago, the United Arab Emirates (UAE) Securities and Commodities Authority and the Dubai World Trade Center Authority (DWTCA) set up a framework that allows the DWTCA to approve and license financial activities relating to crypto-assets.

Barely a month later, the Middle East’s major financial center, Dubai International Finance Center (DIFC), released the first part of a regulatory framework for digital tokens.

Amidst the state’s regulatory moves, it is worth noting that this year has no doubt seen many positive crypto-related developments take place in Dubai.

For instance, in June, Canadian digital asset fund manager 3IQ Corp. officially listed its digital asset-based fund, “The Bitcoin Fund,” on the Dubai-based stock exchange in Nasdaq, Dubai.

Earlier this year, Licensed Solutions Provider to Companies, Kiklabb, an entity owned by Ports, Customs, and Free Zone Corporation, a Government of Dubai organization, began accepting cryptocurrencies as a means of payment for its services.

In October, a partnership deal between Emcredit, a subsidiary of the Dubai Department of Economic Development (DED), and Ebooc Fintech & Loyalty Labs LLC made it possible for Dubai’s residents to pay for goods and services using emcash, a state-backed digital currency.