Dubai is currently hosting the World Expo, which will go on till March 31, 2022. Now the Dubai Media Office has announced that the Dubai World Trade Centre (DWTC) will now become a crypto zone and regulator for cryptocurrencies and other virtual assets. This decision has been made as an effort to attract new business as regional economic competition heats up. Also Read - Crypto.com CEO confirms major data breach: Here’s what we know so far
This initiative has been taken up to create new economic sectors. The specialised zone for virtual assets will host digital assets, products, operators and exchanges. Also Read - WEF Davos Agenda: PM Modi calls for collective global effort on cryptocurrencies
The statement released by the Dubai Media Office states that the country will set up “rigorous standards for investor protection, anti-money laundering, combating the financing of terrorism, compliance and cross border deal flow tracing.” This stance to set up a separate zone is a progressive step taken by the Dubai government to promote digitization, and it is being expected that other countries will also follow suit. Also Read - Kim Kardashian, Floyd Mayweather, Paul Pierce along with other celebrities taken to court over crypto scam
To recall, back in September, the UAE Securities and Commodities Authority, and the Dubai World Trade Centre Authority (DWTCA) came to an agreement that will allow for a framework to be set up, allowing the DWTCA to approve and licence financial activities relating to cryptocurrency assets. Then in October, another Dubai free zone, DIFC released the first part of a regulatory framework for digital tokens.
In other news, the Reserve Bank of India (RBI) reportedly wants a complete ban on cryptocurrencies in India. It expressed its views during the 592nd meeting of the central board of directors chaired by Governor Shaktikanta Das. While the central bank has expressed its views on the matter, some of its board members sought out a balanced view on digital assets, asking for a purview on the developments in the technological space and larger implications for the financial sector.