DUBAI: The Dubai World Trade Centre (DWTC), one of the well-known business hubs in the United Arab Emirates, will become a crypto zone and regulator for cryptocurrencies and other virtual assets, its Media Office announced on Monday,
The DWTC will collaborate with private entities in Dubai to create an attractive environment for the sector, and enforce standards for investor protection, Anti Money Laundering (AML), Combating the Financing of Terrorism (CFT) compliance and cross border deal flow tracing.
The announcement includes creating a framework for innovative financial products, adopting new trends that rely on advanced underlying blockchain technology, such as non-fungible token (NFT) and cryptocurrencies.
The move by the DWTC to create a specialised zone for virtual assets – including digital assets, products, operators and exchanges – is part of a drive by Dubai to create new economic sectors, the statement added.
Due to its crypto-friendly approach, Dubai is home to some of the world’s largest blockchain and digital firms. While the regulatory authorities are focusing on a secure ecosystem for the growth of blockchain technology in the region, they are tightening the rules around crypto money laundering.
In September, the UAE Securities and Commodities Authority and the Dubai World Trade Centre Authority (DWTCA) agreed a framework that allows the DWTCA to approve and licence financial activities relating to crypto assets.
In October, another Dubai free zone DIFC, Dubai’s state-owned financial free zone and the Middle East’s major finance centre, released the first part of a regulatory framework for digital tokens.
