The world’s largest Cryptocurrency, Bitcoin, hit another milestone last month as it reached a record high of sixty thousand dollars. The currency is becoming more and more of a major factor in the financial market each day and is garnering the attention of big banks and governments. And Dubai is set to lead the way with the Dubai Multi Commodity Centre (DMCC) Crypto Centre making it safer, easier, and more efficient to trade in Crypto Assets.
The Crypto Centre is a comprehensive ecosystem for businesses operating in the cryptographic and blockchain sectors. It will be the hub for the development and application of crypto and blockchain technologies. Offering a home to all types and sizes of crypto businesses, from the listing, offering, issuing, and trading of crypto assets by firms to companies developing blockchain-enabled trading platforms.
This is all part of the UAE government’s Blockchain Strategy 2021, wherein the government plans to digitize 50% of government transactions into a blockchain platform by 2021 using cryptographic and open-source technologies and therefore become the world’s epicentre for crypto investments.
DMCC announced the launch of the DMCC Crypto Centre on Monday (24/05). The Centre will offer co-working spaces to crypto entrepreneurs and SMEs and a range of incubator and accelerator programmes, all within the DMCC’s Jumeirah Lakes Towers district.
The Centre is located at the prestigious Almas Tower a cutting edge 68-storey, skyscraper. It will also house a leading crypto advisory practice led by CV Labs, who were behind Crypto Valley, the Switzerland government-backed crypto community, where crypto leaders Cardano and Ehtererum originated.
DMCC has collaboratively developed a solid, progressive and supportive regulatory environment for crypto firms operating in Dubai. Activities conducted within the Free Zone that include the exchange of crypto assets will be regulated by the UAE’s Securities and Commodities Authority (SCA). Crypto firms will also benefit from DMCC’s business regulatory framework, which increases the ease of doing business whilst upholding robust governance and transparency.
As with most new financial products, Cryptocurrency comes with risks, price volatility, hacking and security all need to be considered as the tech is being developed. It also raises a spur of questions such as ‘What will be the impact of Cryptocurrencies on the banking system?’
Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer of the DMCC gave his assurance that this would not be overlooked, in an interview saying: “Confidence, Trust and Security, this will not be launched without covering all bases.”
The benefits of understanding the current crypto asset climate cannot be overstated. We are poised at a unique time in human history due to technological, cultural, and social development in the last century. With China introducing its own digital currency last month, the digital Yuan controlled by its central bank, which will issue the new electronic money. Bankers and other analysts have stated that Beijing aims to digitise all its money eventually.
For those wishing to either set up a company and/or trade in crypto assets in the UAE and legal advisory services, please contact us at ADG Legal:
Contact number: +971 4 4441 2031