Since its inception, the blockchain and cryptocurrency space has faced a lot of criticism from regulators worldwide.
The Emirate of Dubai is, however, showing signs of becoming a true crypto haven. In recent times, we have seen an influx of crypto firms into the emirate city of Dubai. Most of these crypto firms have moved their major operations into both Dubai and its neighboring emirate city of Abu Dhabi. A major reason for this is the friendly crypto policies put in place by regulators in Dubai.
According to U.S. investment bank Citi, Dubai might be the crypto hub the world has been waiting for.
Pro-Crypto Policies in Dubai
A major issue facing acceptance of the cryptocurrency space is the lack of adequate regulations. In some instances, there are little or no regulations to monitor the activities of crypto firms and crypto investments. Where regulations are available, they are usually unnecessarily strict and impossible to adhere to. Some countries, however, choose to ban any form of cryptocurrency transaction.
Dubai, however, has disclosed plans to monitor and regulate crypto activities on its shores. The emirate city recently disclosed plans to formulate its crypto regulations using a top-down approach. Speaking on this, the Global Head of Banking for Citi Global Insights Dubai, Ronit Ghose, revealed that this approach to regulation is putting Dubai at the forefront of crypto adoption. And also helping the Arab city “[…] emerge as the go-to destination for the industry when it comes to setting up shop.”
Also, in Dubai’s neighboring country Abu Dhabi, a virtual asset regulator also went live. Ronit also disclosed that the launch signifies that Abu Dhabi was “[…] putting in place frameworks to allow regulation.”
Exodus of Crypto Firms to Dubai
As previously disclosed, several crypto companies have moved their operations to the Emirate City. One of these firms include:
- WazirX – WazirX is a top Binance-backed cryptocurrency exchange, providing exchange services to Indians. The company recently moved to Dubai in a bid to enjoy the budding regulatory conducive crypto ecosystem.
- Although not yet confirmed, crypto firms like Bybit and Crypto.com will also soon open up shop in the Emirate city.
Binance and FTX also recently acquired crypto licenses in the city. Interestingly, Binance also hosted its 2022 Blockchain Week in Dubai.
Speaking on these updates, Ghose also disclosed that there is currently a “[…] pro-future or a pro-technology agenda.”
Adding that the process to launch a startup or run a business is fairly easier as compared to several other countries. And that Dubai’s “[…] mature handling of the Covid-19 pandemic also helped attract top-level talent.” Therefore, bringing in top crypto founders from countries like India, Russia, Western Europe, China, etc.
Also, the launch of the Dubai Crypto Valley is a clear pointer to the city’s interest in becoming a global crypto hub.
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