The United Arab Emirates has had a good relationship with cryptocurrency. They have been steadfast supporters of decentralized finance and wholeheartedly embraced bitcoin trade and other new crypto coming into the fray. It is apparent that they see crypto development as the future because the Government recently announced that Dubai will have a cryptocurrency center be built at their World Trade Center.
The nation, which has a four-day workweek, announced its latest plans. Beyond that, they also emphasized that the Dubai World Trade Center Crypto Hub (DWTC) – formerly known as Sheikh Rashid Tower – will serve as a regulator that deters and regulates against fraudulent schemes, money laundering, and terrorism among other nefarious acts that could be enacted through the crypto sector. The DWTC is a 38-story event center skyscraper in Dubai. Looking at this large undertaking, the Government’s willingness to put crypto development and regulation as a priority is evident. This is also an attempt to lure in possible investors as economic competition and regional challenges increase.
In the official release from the city, Dubai aims to create more virtual spaces where the biggest and most comprehensive facets of the metaverse can form an ecosystem. This means that the trade center would serve as a space where people could share crypto news, engage in bitcoin trade using trustworthy trading platforms, and even talk about crypto development. With such a large endeavor, the Government is also aware that there are many scammers and hackers ready to turn such a groundbreaking space into an area for minacious virtual activity. Hence, the Dubai World Trade Center’s governing body signed a Memorandum of Understanding with Binance – which is moving its headquarters to Dubai or Abu Dhabi based on reports from Bloomberg – to divvy its knowledge on cybercrime in hopes to help the country serve as regulators. This will be achieved by a constant exchange of information between Binance and the regulatory and enforcer institutions in the U.A.E.
Crypto coins aren’t the only thing the crypto hub is aimed at fostering. NFTs (Non-fungible Tokens) are also another branch of web3.0 that the city wants to focus on. To grow a virtual space where people from different parts of the world can create new NFTs, showcase them, and sell or buy them from one another; is one of the goals the U.A.E Government strives to attain. In fact, amateurs or beginners in the crypto industry could learn of the best trading platforms such as Redot. The city’s official announcement further states their intention to use bitcoin trade and the metaverse to elaborate to people how they can own land as well as other valuables and commodities in a new crypto industry supported by the blockchain.
The UAE Has A Good Track Record Of Supporting Cryptocurrencies
I don’t think many people would argue with you if you said The U.A.E is one of the leading nations of the world when it comes to legislature acceptance of the crypto industry. The country has very lenient crypto jurisdictions when compared to others and they only seem to one to further that support for the crypto industry via new regulations and broader crypto development. The plan is to have over a thousand functioning crypto businesses by 2023. That level of increment in such a short level of time might seem steep, but Dubai believes it can be done with the use of free zones. These areas have instituted an advanced framework to spur entrepreneurs in the web3.0 space to make transactions while also formulating regulations that defend buyers.
From a research survey done in London by Nickel Digital Asset Management, the excitement over cryptocurrency in the United Arab Emirates is immense, and the country will have a widened know-how of digital assets on the blockchain. Despite crypto not being Federally licensed by the Central Bank of the nation – The U.A.E Dirham is the only recognized legal national currency in the Emirates by the bank – there is a growing number of cryptocurrency exchanges that have been given permission to operate in the confines of free zones.
The DWTC is an event in Dubai that shall now be a zone for crypto-related services, bitcoin trade, transactions involving new crypto, and crypto news that will better educate on how the exhibition venue will act as a crypto hub regulating products and exchanges. Dubai has always been a city interested in battling cybercrime and this venture will be no different. The DWTC stated they would be combative in fighting illegal transactions by aiming to enforce harsh baselines. This is all to protect crypto investors from malefactors.
Being in close communication with The U.A.E Government, it was little surprise that Binance was one of the primary people to talk about the news when they tweeted about the decision that the Government had made to turn the DWTC into a comprehensive virtual zone. The CEO of the company, Changpeng Zhao, endorsed the decision made by the DWTC. Zhao had also been very intrigued by the prospect of a cryptocurrency virtual ecosystem in the United Arab Emirates as he was said to have purchased his first house in Dubai late last year, 2023.
In January, a crypto regulatory system was to be initiated by the Dubai Financial Services Authority (DFSA) and several green lights have been given by the authorities regarding the crypto ecosystem. Dubai is, as of now, one of the freest places for crypto development, Non-fungible tokens, and the metaverse. A city and country that has fully accepted decentralized finance and sees it as the future, that is what Dubai and The U.A.E are.
This announcement by the DWTC further showcases the U.A.E’s dedication to pushing crypto as a huge part of their economy and way of life. The specialized virtual space, if successful, could evidently lead to new economic sectors and a more diverse expansion of the nation and city’s economy. In October 2023, DIFC, a separate free area, and the Middle East’s main finance center made available part one of their regulation plan for these crypto-assets. DIFC is owned by the state of Dubai.