Dubai has been supporting the growth of cryptocurrency by regulating crypto to attract crypto businesses to economic competition around the globe. Dubai is now stepping towards becoming the crypto capital of the world as two more new crypto companies have set up their offices in Dubai’s city-state.
Sheikh Mohammed Bin Rashid The ruler of Dubai announced that the emirate had enacted its first law governing virtual assets and formed an independent regulator to regulate the cryptocurrency sector in Dubai.
The Dubai Virtual Assets Regulatory Authority (VARA), a regulatory body oversees the development of cryptocurrencies’ business environment in terms of licensing, regulations, and governance.
Dubai Crypto Regulations 2022
20-04-2022: Crypto firms will flock to Dubai
The UAE’s regulation is more about overseeing the development of the crypto sector than curbing it.
- U.S. cryptocurrency exchange Kraken is expanding into the Middle East and will open its regional headquarters in Abu Dhabi after receiving a full license to operate a regulated trading platform in the UAE.
- Binance, the largest crypto exchange by trading volume, is recruiting over 100 positions in the United Arab Emirates (UAE) and is helping to shape Dubai’s new virtual assets regulations.
- Founders of Indian cryptocurrency exchange WazirX recently shifted base to Dubai which has set off speculations about other crypto and Web3 startups and their management moving to Dubai.
- Crypto.com announced its plans to establish an office in Dubai and will launch a “substantial recruitment drive” in the months ahead to build its presence there.
- Bybit exchange revealed plans to move its global headquarters to Dubai after having received in-principle approval to “conduct a full spectrum” of virtual assets business in the emirate.
09-03-2022: Dubai approves Virtual Asset regulation Law and establishes VARA.
Sheikh Al Maktoum, ruler of the United Arab Emirates said he had issued a law creating a legal framework for crypto in the Emirate of Dubai aimed at protecting investors and “designing much-warranted international standards” for industry governance. In addition, the ruler said a newly formed Dubai Virtual Asset Regulatory Authority, or VARA, would have enforcement powers in the Emirate’s special development and free zones with the exception of the Dubai International Financial Centre.
06-03-2022: DhanuX Wins ‘Best Crypto Startup Exchange’ In Dubai
Multi-utility crypto exchange platform, DhanuX won the award for ‘The Best Crypto Startup Exchange’ in the crypto expo held in Dubai. The crypto exchange was launched in Dubai on March 5, 2022.
17-2-2022: UAE Readies National Crypto Licensing in Push to Embrace Fintech
The United Arab Emirates is poised to issue federal licenses for virtual asset service providers (VASPs) by the end of the first quarter in an effort to attract some of the world’s biggest crypto companies, according to a government official. The Securities and Commodities Authority is in the final stage of amending legislation to allow VASPs to set up, said the official, who requested anonymity due to government policy.
10-1-2022: Dubai allows crypto businesses to set up in a free zone
An economic free zone in Dubai has opened for businesses that are offering, issuing, listing, and trading crypto assets. The Dubai Multi Commodities Center (DMCC) signed the initial agreement with the Securities and Commodities Authority (SCA) to allow licensing for firms that deal with crypto assets. The licenses will be offered by the specialized DMCC Crypto Center after being screened by the SCA, state news agency WAM has reported.
Taxation of Virtual Currency
Dubai offers Zero percent of personal income tax for gains on crypto for tax residents of Dubai. whether you actively trade or hold; it is considered zero percent taxes for capital gains, on business income, and on salary too.
Dubai provides well-established regulatory crypto frameworks as crypto is legal in the country. This makes crypto investors easy to move with legal certainty with no income taxes and no reporting requirements.
Crypto Mining in Dubai
Cryptocurrency mining is not legal in Dubai but Blockchain and Crypto firms are thriving in dubai appearing with enough investment interest. DMCC (Dubai Multi Commodity Authority) has provided an opportunity for investors to integrate a crypto trading company inspired by ADGM regulations.
Historical Events & Announcements
18-12-2021: The Dubai Media Office said efforts are being made to attract new businesses, including cryptocurrencies. As part of this drive, the DWTC is planning to develop a comprehensive ecosystem in collaboration with the private sector to develop an attractive environment for business. The plan also aims to enforce rigorous measures and standards to protect investors, combat terrorism financing, and anti-money laundering measures, track cross-border deals, and ensure compliance.
27-09-2021: Largest crypto Expo in Dubai to host the mega conference which is being reported as the largest crypto event with hosting 3000 delegates the CED 2021, in Dubai. The event sparked discussion on the growth of cryptocurrency in Middle East and African countries.
29-04-2021: The UAE’s federal government issued Federal LAw no.6 of 2021 on mediation in Civil and Commercial disputes (the UAE Mediation Law), built upon previous groundwork for mediation by providing a robust mediation framework through the uAE. Both Abu Dhabi and Dubai chambers of commerce offer mediation services for small claims and larger ones in Dubai.
06-05-2020: ANON summit 2020 will be the largest online blockchain conference in the CET time zone. This event will mirror the in-person experience with a novel digital platform, providing attendees the opportunity to attend speeches, panels, and workshops hosted on a virtual stage.
12-11-2020: The SCA Securities and Commodities Authority of UAE has published a new regulation for licensing crypto assets. Providers offering crypto assets or any crypto-related services must be incorporated onshore within the UAE or within UAE’s financial free zones also called Dubai International Financial Center.
01-01-2020: The Digibyte social network a crypto-friendly server from the outset that interacts with pre-existing social media services. a cryptocurrency-friendly federated social media platform based upon the open-source Mastodon platform and the decentralized ActivityPub protocol.
Conclusion
The Dubai Emirates recently grants virtual assets license to the world’s largest crypto exchange Binance, and FTX European affiliate of the Bahamas -based crypto exchanges by licensing them to legally operate in Dubai. which leads to a stepper ahead to become the world’s upcoming crypto capital country.
To stay tuned with the fast-changing industry Dubai is building a business-friendly ecosystem with robust regulations to attract, retain and enable high-growth companies.
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