Dubai has begun to lay the groundwork for its future as the cryptocurrency paradise of the world. Binance and FTX have become the trust pioneers to launch the city into the new wave and the first crypto companies to have a sneak peek into what is to come.
A Paradise for All Things Crypto
Over the years, Dubai has exhibited goodwill towards cryptocurrencies and assets which has created a robust relationship between the city and crypto investors. Dubai has decided to take things a bit higher as well by passing a law, earlier this month, which would be a coordination of both cryptocurrency and NFTs under one tent.
The Prime Minister of the UAE took to his Twitter page on the 9th of March to announce that the country has signed the law on virtual assets and it has also set up the city’s regulatory authority to protect all virtual assets. He went further to state that it is going to be a valid step to cement Dubai’s position in the crypto sector. According to the law, the newly established agency has the power to give operating licenses to firms and carry out other ancillary duties within the country.
There was no time wasted as the agency swiftly swung into action and gave the country’s first crypto operating license to FTX just last week. FTX was, by the license, authorized to have a headquarters in Dubai as the company’s CEO is elated as a result of the development. In a statement, Bankman-Fried said that the company is so proud to have been the first licensed crypto exchange under the country’s prudent laws.
It was the turn of Binance’s license to follow immediately after that in what was taken as the agency’s firm push to make sure Dubai has a solid head start over other parts of the UAE, and indeed, other countries. Binance appreciated the friendly regulatory environment the UAE provides and at the same time, announced its intention to establish a blockchain hub at Dubai’s World Trade Center.
In times past, the Dubai Emirate hosted blockchain events and declared free-trade areas with consessions on taxes for cryptocurrencies.
While the UAE is carrying out this trial for the crypto industry, there is a close competitor close by in the Middle East.
Bahrain has also flung its doors open to cryptocurrencies as it has a desire to be the leading cryptocurrency county in the Middle East.