As the cryptocurrency industry moves towards a stage of global adoption, Dubai, one of seven emirates in the United Arab Emirates (UAE), is keen to solidify its position as one of the top industry-friendly jurisdictions in the world.
In a recent update, Dubai authorities stated that the Dubai World Trade Center (DWTC) will soon become a comprehensive regulatory zone for crypto-assets and companies in the sector.
However, the statement highlights the government’s intervention to prevent alleged issues involving money laundering through AML practices, which drastically reduces the privacy of companies and users.
“Dubai World Trade Center will collaborate with the private sector and relevant entities in Dubai to create an attractive environment for the sector and enforce rigorous standards of investor protection, Anti-Money Laundering (AML) compliance, Combating the Financing of Terrorism ( CFT) and tracking the flow of cross-border business,” the Dubai Media Office announced on Monday.
Furthermore, the initiative comes as part of the authority’s efforts to develop Dubai’s virtual asset market. They also want to create policies for the integration of “innovative financial products” and embrace new and expanding trends.
“The step continues to accelerate Dubai’s position as a leading global hub for business, commerce and technology. The World Trade Center will deliver and oversee a new, world-class regulatory framework for Virtual Assets legislative and enforcement policies. It will be instrumental in facilitating and expanding international operations and ecosystem innovation to enable secure market adoption and growth of this sector in Dubai,” he concluded.
Shortly after the announcement, CZ, CEO of Binance, the world’s largest cryptocurrency exchange, showed his excitement at the news.
“Dubai World Trade Center will become a comprehensive and regulatory zone for virtual assets and cryptocurrencies.”
According to The Crypto Times, Russian oligarchs are using Dubai’s jurisdiction to accumulate bitcoin due to Western sanctions.
This move highlights competition between jurisdictions to make the regulatory environment more conducive to the development of the sector.