The UAE announces the creation of a free cryptocurrency zone
Solutions for professionals in the field of cryptocurrencies are being offered by more and more jurisdictions. One of such solutions may be the registration of a crypto company in the UAE. The United Arab Emirates positions itself as one of the global centers for crypto firms seeking a more favorable regulatory environment. In the latest updates, it was announced that an exclusive free zone for cryptocurrency companies will be launched in the UAE.
Special zone for digital asset industry companies in RAK
If you are interested in obtaining a license for cryptocurrency activities, then take into account that the UAE authorities continue to implement initiatives and strategies regarding digital assets. A special free zone for crypto companies will be created in Ras Al Khaimah.
According to the announcement on Blockchain Life 2023, it will become the first free zone in global coverage for organizations working in new and developing sectors, for example, Blockchain, crypto asset wallets, NTF, Web3, etc.
RAK Digital Assets Oasis or RAK DAO, created in accordance with Law No. 2 of 2023, is an independent government agency associated with the newly created Department of the Future, whose goal is to stimulate the “economic development of the emirate in the digital age.”
It should be noted that Ras Al Khaimah plays a leading role in national efforts to strengthen the diversified and sustainable economy of the UAE. The new free zone will further strengthen Ras Al Khaimah’s reputation as a preferred destination for a new generation of business enterprises. It is assumed that RAK DAO will become a key engine of economic growth of the entire region, by attracting a large number of new players interested in launching a crypto startup in the UAE.
The UAE Maintains the Reputation of a global crypto center
In recent years, the Emirates has made significant progress towards becoming a world leader in the field of blockchain and cryptocurrencies. The UAE legalized crypto assets five years ago. This step was preceded by the development of a regulatory framework for regulating the cryptocurrency market by the Securities and Commodities Authority (SCA) in cooperation with the leaders of the blockchain industry. The legislative framework is still expanding.
In addition, the government has taken an active approach to the regulation of cryptocurrencies in the UAE, in particular, at the beginning of 2022, a corresponding law was approved in the Emirate of Dubai, the purpose of which is to create “an independent body for the supervision and control of providers of crypto services, establishing the basis for licensing and regulation of cryptocurrency exchanges in the UAE.
The government has also launched various initiatives to support the development of blockchain technology. In particular, the Dubai Blockchain Strategy 2020 was aimed at making Dubai a blockchain-powered city by 2020. In 2022, the Central Bank of the Emirates announced the creation of its own CBDC as part of the development strategy for 2023-26. The main goal is to become one of the ten leading central banks in the world.
The latest initiative, the UAE’s new free cryptocurrency zone, will encourage young talents to implement their ideas for the digital world, as well as encourage global digital players to expand their presence in the Emirates, which will add additional value to the economy by creating new jobs.
In general, the regulation of the crypto assets market in the UAE is aimed at supporting the economic growth of the country as a whole, and the diversification of the economy of the Emirate of Ras Al Khaimah in particular, promoting the status of this emirate as a center of innovation.
RAK DAO will accept applications from the 2nd quarter of 2023.
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