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 specialized 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.
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 license 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 center.
The DWTC announcement is in keeping with the UAE’s efforts to assist banks and other financial institutions in adopting new technology and managing any risks that may arise as a result of their implementation.
The DWTC wants to increase Dubai’s virtual assets and markets, notably by expanding its framework for innovative financial products and adopting new trends like cryptocurrencies and non-fungible tokens, which are based on advanced blockchain technology.
According to CoinMarketCap, the global cryptocurrency market remains strong, with a market capitalization of more than $2.14 trillion.
The UAE’s Central Bank does not recognize or acknowledge any cryptocurrency, and the dirham remains the country’s sole legal money.
However, free zones like Dubai and Abu Dhabi have established an advanced framework to attract crypto entrepreneurs to open exchanges while also establishing rules to safeguard consumers.