The ecosystem will enforce rigorous investor protection, anti-money laundering and counter-terror standards
The Dubai World Trade Centre has announced that it will undertake a number of government-backed initiatives to become a comprehensive and regulation-based zone for crypto products, operators and exchanges. The initiative is in line with the United Arab Emirates’ attempts to emerge as one of the world’s top crypto-friendly jurisdictions.
In a bid to improve local crypto development and regulation, the DWTC will design a comprehensive ecosystem for the crypto sector and strive to collaborate with private entities to set up an “attractive environment for the sector.”
As one of the most prominent government-owned event and exhibition venues in Dubai, DWTC recognises the criticality of debates surrounding crypto regulation and will thus enforce rigorous standards including investor protection measures, Anti-Money Laundering norms and undertake specific actions to counter terror financing via crypto.
“The World Trade Center will deliver and oversee a new world-class regulatory framework of Virtual Asset legislative and enforcement policies,” the statement from DWTC said.
Binance CEO Changpeng Zhao took to Twitter to celebrate the announcement, making the crypto stalwart one of the first people to react to the development. Reports suggest that the executive might be looking at UAE as a possible crypto centre since he reportedly bought his first home in Dubai in October.
The UAE government in general and the Dubai authorities, in particular, have been undertaking numerous crypto development projects to identify ways in which crypto, blockchain technology and Non-Fungible Tokens (NFT) could be utilised to benefit the local economy.
In January this year, the Dubai Financial Services Authority announced its plan to create a cryptocurrency regulatory framework in 2021. In line with this commitment, DFSA has issued a series of crypto-related regulatory approvals this year. Dubai has also established several free economic zones for the crypto sector, promoting its growth in the region in 2021.