Booming of Blockchain and Cryptocurrency in UAE

Booming of Blockchain and Cryptocurrency in UAE

Cryptocurrency and Blockchain technology are strongly regarded in UAE. The UAE has one of the first regulators for DLT, Blockchain technology. It has a strong belief in blockchain technology and incorporated blockchain technology in its authorized organization in the UAE.

They want to be advanced in adopting advanced technology in their government process. They are grasped by features like decentralization, transparency, and immutable in blockchain technology.

Dubai is the motherland of over 100 blockchain businesses and has seen a 24 percent boost in the use of blockchain as compared to the global average of 19 percent. Embracing blockchain technology will help to preserve about 5.5 billion dirhams yearly in document processing alone.

The Emirates Blockchain Strategy 2021 desires to capitalize on blockchain technology to switch 50 percent of government transactions into the blockchain platform by 2021. The Dubai Blockchain Strategy will help Dubai to be the foremost city fully powered by Blockchain by 2020. The scheme will be using three strategic pillars: government efficiency, industry innovation, and multinational leadership.

UAE has a strong belief in Blockchain technology, consistently regulating cryptocurrency. It is forming laws for developing crypto businesses to adopt it is authorized on government activities.

UAE Jurisdictions in the country are diverged between the mainland, where the regulator is the Securities and Commodities Authority (SCA), and free zones( particular areas within the UAE with relaxed tax and regulatory authorities).

Every free zone has particular authority associated with regulating for that specific zone.

Dubai International Financial Centre (DIFC) -Regulated by Dubai Financial Services Authority (DFSA) Abu Dhabi Global Markets (ADGM)- Regulated by the Financial Services Regulatory Authority (FSRA) Dubai Multi Commodities Centre (DMCC),- under regulatory remit of the SCA.

Kokila Alagh, founder and CEO of Karm Legal Consultants, conveyed a quick overview of the regulatory status in the country with Cointelegraph.

UAE is SCA, the mainland regulator, nourishes assurance and possibilities for crypto and blockchain businesses. SCA is the advanced regulator in the global topography as they are supporting the booming and playing a key role in developing frameworks to adapt as per the emerging sectors like DistributedLedgerTechnology, blockchain.

In 2018, FSRA, ADGM is the first digital asset regulator in the UAE. ADGM is one of the first regulators globally to introduce digital asset securities regulations and guidance on digital assets. ADGM is the jurisdiction for founded blockchain companies.

Security tokens are first regulated by the DFSA, DIFC’s in UAE. Current DFSA regulations protect the tokenization of securities via blockchain and distributed ledger technology.

Including the tokenization of shares, derivatives, bonds, debentures, certificates, or units of a fund are regulated by the DFSA, DIFC's.

There are Paper as drafts under progress for the stablecoins, cryptocurrencies, and NFTs in UAE. The free zone in UAE has issued special licenses like DLT technology service provider license and proprietary trading in crypto commodities license.

Crypto Oasis, is a crypto-based center, 130 blockchain companies have registered currently. Dubai Multi Commodities Centre (DMCC) is one of the advanced regulators for the development of the crypto ecosystem in the UAE.

It extends its regulator license for the crypto exchange for setting up a business venture in the UAE. Binance is working collaborated with UAE government regulators like DMCC to get their license in Dubai.

The Binance signed a note of agreement with the Dubai World Trade Centre Authority as they established a crypto hub.

The Cryptocurrency Exchange and Blockchain-based businesses are becoming the mainstream investments of the UAE people.