In a bid to sustain its relevance in the rapidly growing cryptocurrency sector globally, United Arab Emirates (UAE) has announced its intention of making its free zone government-owned Dubai World Trade Center (DWTC) a cryptocurrency hub.
The retrofitting of the DWTC into a crypto hub aims to encourage the adoption and integration of the digital assets class across the nation.
The Dubai World Trade Center (DWTC)
The DWTC is a government-owned thirty-eight stories building that was opened in 1979. It is a free zone in the Arab country, meaning that accommodated parties can perform any number of activities such as importing and exporting. It wouldn’t be under the sanction normally.
It indicates that activities performed therein enjoy a certain number of benefits that such action will not see in other locations in the country under normal conditions.
The DWTC prides itself as one of the world’s largest trade centers and free zone, being a major host to numerous world-changing global programs and events since its inception.
DWTC Is Now A Cryptocurrency Hub
The free zone advantages that the DWTC offers have now been extended to the cryptocurrency sector in the nation and the world. The nation’s government is set to develop a new framework targeted at its development in the crypto community. The framework will utilize the DWTC as its formation core; this will enable the framework to become a dynamic independent system that grows and reacts to the various developments in the world’s ever-changing crypto industry.
Regulations and compliance guidelines that will mirror the Financial Action Task Force’s (FATF) anti-money laundering (AML) guidelines will now be given out from the DWTC.
The proposed framework will see very strict but fair guidelines that will combat nested exchanges, inculcate the combat of financing terrorism intrinsically and penalize offenders heavily.
Dubai As A Leading Crypto-Friendly Nation
The UAE has a reputation as one of the standing cryptocurrency-friendly countries globally. It stands ahead of the lot with Brazil, South Korea, Australia, and Canada.
The country has seen various small and medium-scale cryptocurrency adoption into its various sectors. The diffusion of the industry into the nation’s numerous sectors is staunchly encouraged by the government.
Dubai’s World-Leading Initiative
The government of Dubai, one of the seven Emirates, has penned its decision to make the DWTC a crypto extension a part of its World-Leading Initiative. The initiative houses a comprehensive plan that seeks to improve further the standard of the cryptocurrency industry globally and locally. This initiative features a step-by-step plan that will see the relevance of Dubai in the coming era become irreplaceable.
The DTWC retrofit is just the first step the Dubai government will undertake in this ambitious endeavor.
The framework has already presented the country’s plan, including crypto derivatives and proper care for the similarly rapidly growing non-fungible tokens DeFi space.
The new initiative and resultant framework are widely welcomed globally in the crypto community. It has seen excitement from major stakeholders in the global industry. Binance CEO Zhao Changpeng is one of the said stakeholders and has voiced his excitement about the new development on his social media account on Twitter.