According to the Dubai Media Office, the Dubai World Trade Centre (DWTC) would become a crypto zone and regulator for cryptocurrencies and other virtual assets as part of efforts to attract new business as regional economic competition heats up.
According to the statement, the DWTC’s decision to create a specialised zone for virtual assets – comprising digital assets, goods, operators, and exchanges – is part of a larger effort by Dubai, one of the United Arab Emirates’ seven emirates, to develop new economic sectors.
“Rigid standards for investor protection, anti-money laundering, counter-terrorism funding, compliance, and cross-border deal flow tracing” will be developed, according to the statement.
The Dubai World Trade Centre Authority (DWTCA) and the UAE Securities and Commodities Authority (SCA) agreed on a framework in September that permits the DWTCA to approve and licence financial activity using crypto assets.
Another Dubai free zone opened in October. The first element of a regulatory framework for digital tokens was revealed by DIFC, Dubai’s state-owned financial free zone and the Middle East’s primary finance centre.
Dubai and Abu Dhabi free zones have put in place an advanced framework to encourage crypto entrepreneurs to open exchanges while also laying out laws to safeguard consumers.