During the World Economic Forum in Davos, Dubai’s government agency has announced its intention to create a crypto valley in its tax-free region.
According to the announcement, Dubai Multi Commodities Centre together with CV VC and CV Labs it plans to create a crypto valley. It is going to be the largest cryptographic and blockchain technology ecosystem in the world.
Its representatives noted it would be the world’s largest ecosystem for cryptographic and distributed ledger technologies. DMCC explained that it is “designed to foster growth, collaboration, and integrity across the global blockchain economy.”
Executive chairman and CEO Ahmed Bin Sulayem further explained, “The launch of the crypto valley in DMCC will enhance the city’s dynamic business environment, and support the wider strategy of the UAE government to attract the innovators, entrepreneurs, and pioneers that will shape the future economy.”
DMCC Crypto Valley to offer various services
Established in 2002, DMCC aims to enhance commodity trade flows through the country. Its free zone provides a range of benefits, including 0 percent personal and corporate income tax.
The Crypto Valley is going to offer a wide range of services. They will include incubation for early-stage startups, amongst others. As well as co-working facilities, innovation services for corporate clients, blockchain and entrepreneurship training, education, events, mentoring, and funding.
DMCC is home to over 100,000 people and 17,000 member companies representing more than 170 countries and 20 business sectors.
To that end, CV VC and CV Labs founder Ralf Glabischnig said: “We are thrilled to move into the Middle East and North Africa (MENA) region with DMCC as a strong local partner.”
He further added they are looking forward to bringing reliable partners from the crypto valley to Dubai. For instance, Coreledger, Inacta, Lykke, and Tezos, which are already active in the MENA region.
Advantages of free zones
One of the key benefits of the DMCC is that it is located in one of Dubai’s many “free zones.” In these zones, there are no personal, corporate, or withholding taxes. Thus, the businesses maintain 100 percent of all the money that they generate.
At least 17,000 companies have already registered with the DMCC according to an official statement. Moreover, its new Crypto Valley will have its headquarters in Jumeirah Lakes Towers (JLT). The JLT is right in the center of DMCC’s business district.
The Dubai Multi Commodities Center also plans to establish rules and regulations for the cryptocurrency industry in the region.
This is not the first time that the government of Dubai is experimenting with cryptos. In late 2017, however, Dubai announced its first plans to introduce state-backed crypto dubbed EmCash.
Notably, with the launch of the Dubai crypto valley, UAE will join Switzerland and the Philippines, who already have crypto valleys of their own