As the crypto business gains mainstream acceptance and usage, regulators throughout the world are wrestling with how to address the particular problems faced by this quickly evolving sector.
While some countries have welcomed cryptocurrencies and blockchain technology to foster innovation and economic progress, others remain suspicious and have chosen a more cautious approach to regulation.
Over the last few years, Dubai has made considerable gains in regulating the fledgeling financial industry.
The Dubai Multi Commodities Centre (DMCC) inaugurated the DMCC Crypto Centre in 2019, with the goal of providing a secure and regulated environment for trading in digital assets. The platform is governed by the Dubai Multi Commodities Centre Authority, which manages the licencing and regulation of enterprises operating within the DMCC Free Zone.
The Dubai Financial Services Authority is also in charge of overseeing the city’s commercial hub economy. The DFSA will launch a regulatory framework for issuing and trading digital assets in November 2020.
Companies must get a licence from the DFSA and adhere to a number of regulatory regulations, including anti-money laundering (AML) and counter-terrorist financing (CTF) procedures.
The DFSA’s approach to the industry is centred on encouraging innovation while protecting investors and the integrity of the financial system. The regulator has declared that it is dedicated to providing a regulatory environment that promotes the growth of the crypto business while reducing the dangers posed by rogue actors.
With various attempts to encourage the usage and growth of cryptocurrencies and blockchain technology, Dubai is developing as a growing centre for the crypto business. The city has made major investments in strengthening its financial ecosystem, with a focus on the cryptocurrency industry.
The Dubai government has also developed the Dubai Blockchain Strategy, which intends to position the city as a global leader in developing blockchain technology, in addition to the DMCC Crypto Centre, which provides a regulated environment for trading in digital assets.
