In a unique move, the Dubai World Trade Centre (DWTC) will become a crypto zone and regulator for cryptocurrencies and other virtual assets, the Dubai Media Office said on Monday, part of efforts to attract new business as regional economic competition heats up.
The statement said that those efforts come as part of a drive-by Dubai, one of the United Arab Emirates federations of seven emirates, to create new economic sectors. “The move by DWTC aims to create a specialized zone for virtual assets – including digital assets, products, operators, the statement added.
“Rigorous standards for investor protection, anti-money laundering, combating the financing of terrorism, compliance and cross border deal flow tracing” will be developed, it said.
In the past few months, another Dubai free zone DIFC, Dubai’s state-owned financial free zone, and the Middle East’s major finance center, released the first part of a regulatory framework for digital tokens.
In addition, the UAE Securities and Commodities Authority and the Dubai World Trade Centre Authority (DWTCA) agreed on a framework that allows the DWTCA to approve and license financial activities relating to crypto-assets.
According to local reports, it is worth mentioning that Dubai expects to have more than 1,000 cryptocurrency businesses by 2022 as it accelerates efforts to boost its digital economy.
“A growing number of institutional investors and wealth managers plan to increase their exposure to crypto-assets between now and 2023,” the report added.