Dubai World Trade Centre To Become A Crypto Hub For Regulation

The Dubai World Trade Centre (DWTC) will become a crypto zone and regulator for virtual assets and crypto, comprising digital assets, goods, operators, and exchanges, as part of the Dubai government’s efforts to build new economic sectors.

Dubai Likes Crypto

The United Arab Emirates (UAE) is becoming one of the world’s most cryptocurrency-friendly jurisdiction, with the Dubai government announcing a new program to assist local cryptocurrency development and regulation.

The Dubai World Trade Centre (DWTC), a government-owned event and exposition facility in Dubai, said on Dec. 20 that it will become a comprehensive zone and regulator for cryptocurrencies, products, operators, and exchanges.

The Dubai World Trade Centre will provide a full environment for this forward-thinking industry in the city.

The Dubai World Trade Centre will work with the private sector and other relevant entities in Dubai to create a welcoming environment for the sector and to enforce strict standards for investor protection, anti-money laundering (AML), counter-terrorist financing (CFT) compliance, and cross-border deal flow tracing.

The initiative, which is part of Dubai’s attempts to further develop virtual assets and markets, includes developing a framework for novel financial products and adopting new trends such as non-fungible tokens (NFT) and cryptocurrencies that rely on advanced underlying blockchain technology.

“The World Trade Center will deliver and oversee a new world-class regulatory framework of Virtual Asset legislative and enforcement policies,” the statement reads.

The Dubai Financial Services Authority announced in January that as part of its 2021 business plan, it would establish a crypto regulatory framework. So far, the authority has awarded a number of regulatory permissions for the crypto business, and Dubai has become a hub for various crypto-friendly free zones.

Related article | Bittrex Global CEO Declares Dubai Will Gain Benefit From Cryptocurrency Market Expansion

BTC/USD poised for rise. Source: TradingView

Binance CEO Happy With The Announcement

Binance CEO Changpeng Zhao was one of the first in the crypto community to applaud the DWTC’s recent news. Zhao appears to have developed an interest in the UAE’s crypto industry, since he reportedly purchased his first property in Dubai in October.

» Dubai World Trade Centre to become comprehensive zone and regulator for virtual assets and Crypto https://t.co/Ndr6GDcJ4u

— CZ 🔶 Binance (@cz_binance) December 20, 2021

The plan is in keeping with Dubai’s ongoing efforts to assist crypto growth, with both Dubai and the UAE actively seeking to benefit the local economy from blockchain technology, nonfungible tokens, and cryptocurrencies.

Since CZ was sighted in Dubai, holding a meeting with the authorities, Twitter was awash with predictions about Binance’s probable HQ being built up in Dubai at the start of the fourth quarter. Last month, CZ confirmed Binance’s plans to become a digital asset service provider in France by next year, putting the Dubai HQ rumors to rest.

Given Binance’s continued efforts to expand its worldwide reach by establishing footholds in many parts of the globe, predictions regarding a Dubai headquarters do not appear implausible.

The World Trade Center will deliver and oversee a new world-class regulatory framework of Virtual Asset legislative and enforcement policies, which will be critical to facilitating and broadening cross-border operations and ecosystem innovation in order to enable safe market adoption and growth for this sector in Dubai.

Related article | Binance ’s Road To Compliance Continues With A List Of Rights For Crypto Users

Featured image from Unsplash, chart from TradingView