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Forex in this article
• United Arab Emirates in cryptocurrency
• Crypto-friendly regulation
• Legal certainty attracts crypto companies
As the first city in the Middle East, Dubai has formulated a progressive crypto law to create a secure regulatory framework for virtual assets, according to “Blockchainwelt”. This regulation should allow the management of any crypto business in the emirate, but also place great emphasis on governance, for example by taking into account international guidelines for combating the financing of terrorism and money laundering. The goal is to make the new virtual asset market competitive and offer security to international investors.
To this end, Dubai has now established the Virtual Assets Regulatory Authority (VARA). As “Blockchainwelt” reports, Dubai is the first global economy to have established a specialized “virtual asset” regulator. Anyone wishing to settle in the emirate and make crypto transactions must have VARA approval from now on. VARA is financially independent and works closely with affiliated authorities such as DWTCA (Dubai World Trade Center Authority).
Crypto exchanges are discovering Dubai
The promised regulatory security already attracts several crypto exchanges. As early as March 2022, FTX and Binance received a so-called Virtual Asset Exchange license in Dubai, which allows them to perform crypto transactions.
Binance, for example, can now extend limited exchange products and services to pre-qualified investors and professional financial service providers thanks to this license. It can also create a blockchain technology hub at the Dubai World Trade Center to nurture new talent and build a vibrant blockchain ecosystem.
In addition, according to “Krypto News Deutschland”, during the Investopia summit on March 28, Crypto.com announced that it would establish a regional presence in the United Arab Emirates, specifically in Dubai. The Singapore-based Bybit Stock Exchange also wants to take advantage of the fast-growing and friendly environment and has even announced that it will move its global headquarters to Dubai.
Abu Dhabi is also dependent on crypto
The UAE consists of seven emirates. Of these, Dubai is not the only sheikdom in the Persian Gulf region that sees great potential in cryptocurrencies as a future economic engine. In the immediate vicinity of Dubai, the Emirate of Abu Dhabi has also created a comprehensive regulatory framework for activities involving virtual assets. According to the “BTC Echo”, this has already attracted the US cryptocurrency exchange Kraken, which recently secured a license to distribute cryptocurrencies in the Abu Dhabi Global Market, the financial center in Abu Dhabi.
As reported by “BTC Echo”, citing data from Chainalysis, the UAE is the third largest crypto hub in the Middle East, after Turkey and Lebanon, with a transaction volume of around $ 26 billion in 2021.
Gearing must be between 2 and 20
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