Dubai Mandates Licensing for Crypto Companies

[zasad@]

https://www.coindesk.com/policy/2023/02/07/dubai-mandates-licensing-for-crypto-companies-as-it-sets-out-regulatory-requirements/
Dubai Mandates Licensing for Crypto Companies as It Sets Out Regulatory Requirements
A new set of rulebooks from the Virtual Assets Regulatory Authority lays out requirements for crypto firms covering everything from issuance and exchange services to advertising.
"With bespoke rules and guidelines designed to provide clarity, assure certainty, and mitigate market risks, VARA seeks to develop a model framework for global economic sustainability within an innovation-centric environment that is truly borderless, technology agnostic, and future-focused," the regulator said on Tuesday.


https://www.coindesk.com/policy/2023/02/08/dubai-prohibits-privacy-coins-under-new-crypto-rules/
Dubai Prohibits Privacy Coins Like Monero Under New Crypto Rules
The issuance of anonymity-enhancing crypto are banned under the Emirate's new regulations for digital assets.

[jackg]

I'm starting to think regulating crypto firms (or looking like they are) might be something governments are seeing as a bit of a race to enable international investors to see how those regulators are adapting.

Also banning privacy coins is going to be a fun exercise if bitcoin and ethereum make more steps towards going private - I could see that legislation dying either then or by then too.

[bmwister]

Last year, Dubai and other UAE countries took important steps to rapidly adopt cryptocurrencies. For example, they launched the Dubai Metaverse strategy and issued a number of licenses to top international exchanges. In October 2022, 21 Shares launched the first Bitcoin ETP in the Middle East. It is traded on the Nasdaq Dubai international financial exchange under the ABTC ticker.

As of January 2023, more than 500 crypto startups have registered in the Dubai Free Economic Zone. This is a very good result!

In my opinion, while some countries are focused on tightening controls, Dubai's experimental approach could become a benchmark for other regions.

[zasad@]

Dubai's problem is that their low taxes are offset by a very expensive standard of living.
If programmers are transported there, it will be very costly for the project. It is cheaper to work in Europe with countries loyal to cryptocurrencies. Registering a company in the Free Economic Zone is easier, but there are certain restrictions for the company. It is tedious to obtain additional permits if you want to expand the market.

[joniboini]

As of January 2023, more than 500 crypto startups have registered in the Dubai Free Economic Zone. This is a very good result!
In my opinion, while some countries are focused on tightening controls, Dubai's experimental approach could become a benchmark for other regions.

Is there any notable startup/business registered in DMCC? I tried looking into their website but I can't find any names that I recognized. Granted I'm not up to date with new crypto startups nowadays, but considering they have such a large number of registered companies, I thought I'd recognize one or two[1].

According to some news that I read, the majority of those numbers are small businesses, while larger one such as Binance is yet to register here. They probably don't need it anyway since most programs that I see are about kickstarting their business and networking support. Most of their claims of successful members also refer to local businesses.

Registering a company in the Free Economic Zone is easier, but there are certain restrictions for the company. It is tedious to obtain additional permits if you want to expand the market.

Some reports claim the due diligence process to register as a member is quite strict, but there is no comparison to other regions/countries so that's that. From the way I see it, an established business looking to open a branch in Dubai would likely benefit more. That being said, I can see how a new business registers an office there and just hire overseas freelancers to cut cost[2]. CMIIW.

[1] https://blockworks.co/news/dubai-free-zone-now-home-to-more-than-500-crypto-startups
[2] https://www.dmcc.ae/free-zone/set-up-a-new-company

[NeuroticFish]

I'm starting to think regulating crypto firms (or looking like they are) might be something governments are seeing as a bit of a race to enable international investors to see how those regulators are adapting.

Many companies avoid opening business where there's no clear legislation in the area they're working.
So clear regulations can be seen as a step towards attracting more such/similar businesses in the area. Businesses that will obviously get taxed, hence of course that there's a race in providing clear regulations.

Also banning privacy coins is going to be a fun exercise if bitcoin and ethereum make more steps towards going private - I could see that legislation dying either then or by then too.

Sadly I don't expect Bitcoin go on that route too soon.
It may become feasible though when bitcoin will be used literally everywhere 

[coupable]

I'm starting to think regulating crypto firms (or looking like they are) might be something governments are seeing as a bit of a race to enable international investors to see how those regulators are adapting.

Many companies avoid opening business where there's no clear legislation in the area they're working.
So clear regulations can be seen as a step towards attracting more such/similar businesses in the area. Businesses that will obviously get taxed, hence of course that there's a race in providing clear regulations.

This is not something new or surprising in a country like the UAE, which began issuing legislation suitable for crypto more than a year ago, including:
- Ruler of Dubai announces a law regulating digital currencies on March 9, 2022: Source
- The Binance platform obtained a business license on March 16 of the same year: Source
- Crypto.com and Bybit announced the establishment of a regional headquarters in Dubai on March 29, 2022: Source
-Finally, the Kraken platform obtains a license to operate in the Abu Dhabi market and enables users to use services in the local currency: Source
This is in addition to the fact that the collapsed platform, FTX, had also obtained a work permit in Dubai on March 15, 2022: Source

[zasad@]

https://www.centralbank.ae/media/mdupathy/cbuae-launches-a-financial-infrastructure-transformation-programme-to-accelerate-the-digital-transformation-of-the-financial-services-sector-en.pdf
CBUAE launches a Financial Infrastructure TransformationProgramme to accelerate the digital transformation of the financial services sector
"In assisting the financial industry to move forward to the digital decade, the next stage
of the FIT Programme is to develop and implement a number of digital infrastructures,
including the establishment of Financial Cloud, eKYC and Open Finance Platforms.
These digital infrastructures will improve regulatory compliance, reduce cost of
operation, enhance innovation and customer experience, and most importantly,
strengthen their security and operational resilience.
With a full integration set for 2026, the FIT Programme creates an important platform
in support of the country’s “We the UAE 2031” vision and National Digital Economy "

[avikz]

Dubai Prohibits Privacy Coins Like Monero Under New Crypto Rules
The issuance of anonymity-enhancing crypto are banned under the Emirate's new regulations for digital assets.

Is it a surprising news to you? If yes, then you were probably living under the rock. Slowly every nation will make rules to ban anonymous payment or privacy coins. It's just a matter of time. Anonymity is the biggest headache for the governments and this is effectively delaying the crypto adoption of many governments.

Dubai is usually known for their lenient rules and regulations. But when they are emphasizing on registering the crypto companies, they might have a plan for them. Let's just hope that the plan is favorable for the crypto market.

[zasad@]

Dubai Prohibits Privacy Coins Like Monero Under New Crypto Rules
The issuance of anonymity-enhancing crypto are banned under the Emirate's new regulations for digital assets.

Is it a surprising news to you? If yes, then you were probably living under the rock. Slowly every nation will make rules to ban anonymous payment or privacy coins. It's just a matter of time. Anonymity is the biggest headache for the governments and this is effectively delaying the crypto adoption of many governments.

Dubai is usually known for their lenient rules and regulations. But when they are emphasizing on registering the crypto companies, they might have a plan for them. Let's just hope that the plan is favorable for the crypto market.

For me, this is not news and not a problem, if banks do not accept monero, I will change it to bitcoin. In Dubai, there is currently no verification of the source of funds, and many crypto users buy expensive real estate without verification. I think that this will end quickly, and property owners will be asked where they have so much money from and whether they paid taxes.

[zasad@]

https://cointelegraph.com/news/uae-emirate-to-launch-free-zone-for-digital-and-virtual-asset-firms
"Ras Al Khaimah, one of the United Arab Emirate’s (UAE) seven Emirates, is set to launch a free zone for digital and virtual asset companies as the country’s approach to the industry continues to attract global crypto players.

The RAK Digital Assets Oasis (RAK DAO) will be a “purpose-built, innovation-enabling free zone for non-regulated activities in the virtual assets sector.” Applications will open in the second quarter of 2023, the statement said.

The free zone will be dedicated to digital and virtual assets service providers in emerging technologies, such as the metaverse, blockchain, utility tokens, virtual asset wallets, nonfungible tokens (NFTs), decentralized autonomous organizations (DAOs), decentralized applications (DApps) and other Web3-related businesses."

[grahammiranda13]

it was about time! saw this coming

[yhiaali3]

Yes, there are a lot of important legislations and large projects related to Bitcoin and Crypto that have taken place in the recent period in the Middle East and North Africa region, especially in the Gulf countries, led by the United Arab Emirates, Saudi Arabia and Bahrain.

Earlier last month, Binance CEO Changpeng Zhao indicated in response to a tweet by Gemini Exchange co-founder Cameron Winklevoss that the next bull run could start from the "middle east."

                                     

https://twitter.com/cz_binance/status/1627627870620188673

[Husires]

The free zone will be dedicated to digital and virtual assets service providers in emerging technologies, such as the metaverse, blockchain, utility tokens, virtual asset wallets, nonfungible tokens (NFTs), decentralized autonomous organizations (DAOs), decentralized applications (DApps) and other Web3-related businesses."

I began to see that the use of NFTs gave a kind of public acceptance of cryptocurrencies away from what we used to hear in the past about Bitcoin being used by scammers or black markets.
Why is the use of cryptocurrencies in the UAE linked to free zones, and does this concept exist in other countries?
Does this include accepting and using Bitcoin?

[zasad@]

The free zone will be dedicated to digital and virtual assets service providers in emerging technologies, such as the metaverse, blockchain, utility tokens, virtual asset wallets, nonfungible tokens (NFTs), decentralized autonomous organizations (DAOs), decentralized applications (DApps) and other Web3-related businesses."

I began to see that the use of NFTs gave a kind of public acceptance of cryptocurrencies away from what we used to hear in the past about Bitcoin being used by scammers or black markets.
Why is the use of cryptocurrencies in the UAE linked to free zones, and does this concept exist in other countries?
Does this include accepting and using Bitcoin?

The free zone in the UAE restricts the activities of any company. That is, you cannot engage in a similar business throughout the country.To obtain an extended license, as a rule, you need to go through a more complicated procedure, if such activity is allowed. I think that companies that accept bitcoins do verification using well-known AML services.

[safar1980]

UAE emirate to launch free zone for digital and virtual asset firms
Free-trade zones in the UAE are areas where entrepreneurs have 100% ownership of their businesses and have different regulatory frameworks and tax schemes.
https://cointelegraph.com/news/uae-emirate-to-launch-free-zone-for-digital-and-virtual-asset-firms

[dansus021]

Dubai is called a crypto heaven for some people. But sooner or later they will regulate crypto  . In my opinion approach like this is still ok to me, as long as both have benefits like the government can have tax from the crypto company and the customer got protected from it. Win-win solution right? Just like my country Indonesia. It always better to regulate than banning it

[zasad@]

https://gulfnews.com/business/banking/uae-central-bank-launches-digital-dirham-strategy-1.1679553666439
UAE Central Bank launches Digital Dirham strategy
"CBDC is a risk-free form of digital money issued and guaranteed by the central bank
Abu Dhabi: The Central Bank of UAE launched the CBUAE Central Bank Digital Currency (CBDC) Strategy, one of the nine initiatives of the CBUAE’s Financial Infrastructure Transformation (FIT) Programme, it said on Thursday. The CBUAE has engaged with G42 Cloud and R3 as the infrastructure and technology providers respectively for its CBDC implementation."

[dansus021]

At least they are not banning the entire crypto industry, sooner or later all countries will regulate crypto since the crypto space is growing and the money is great why not regulate and put tax on it right hehehe.

and about the privacy coin  of course, it will happen too when the Centralized Exchange start doing KYC that begin the end of the privacy coin with the reason "protecting customer and Anti Money Laundry"

[zasad@]

About cryptocurrency and taxes in Dubai
This article outlines the legal and regulatory framework governing virtual assets such as cryptocurrencies in the United Arab Emirates (UAE) and in Dubai specifically. After exploring how cryptocurrency is regulated in the UAE and whether investing in cryptocurrency is legal in said jurisdiction, the article will also explore how cryptocurrency is taxed in Dubai, what the applicable legal framework for digital currencies and virtual assets is, and how to invest in Bitcoin (BTC) in Dubai.
https://cointelegraph.com/learn/cryptocurrency-regulation-in-the-uae-and-the-dubai-virtual-assets-law