Dubai is Fast Becoming A Crypto Hub
- Dubai is becoming one of the most crypto-friendly regions in the world.
Legislators around the world are attempting to work on cryptocurrency regulations and exert more control over the volatile market. However, Dubai has embraced a different approach that would attract more crypto firms and make it a hub for digital assets.
Authorities in Dubai recently granted FZE, a subsidiary of the popular crypto exchange, FTX, a full operational license. According to reports, Dubai’s Virtual Asset Regulatory Authority (VARA) issued the country’s first Minimal Viable Product (MVP) license, which allows FZE to operate in the region.
This is one of the many moves the emirate is making in order to accommodate digital assets and lure new projects. Helal Saeed Almarri, the director general of the Dubai WTC Authority, claims that the MVP program was established for safe and sustainable expansion in Dubai.
Dubai regulators approved the virtual assets law and set up the Dubai VARA. In March 2022, FTX became the first exchange to receive Dubai’s virtual asset exchange (VAX) license. Like the rest of the world, Dubai and other parts of the UAE have moved quickly toward adopting cryptocurrencies and are creating crypto-friendly policies to welcome projects. The Emirates showed its true intentions when it announced the introduction of the Dubai Metaverse Strategy earlier this year.
The Dubai Metaverse Strategy is geared toward turning the region into one of the top 10 metaverse economies in the world. The strategy aligns with Dubai’s plans to create more than 40,000 virtual jobs by 2030.
The Ruler of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, clearly stated that the region’s focus will be shifted to artificial intelligence and web3. The region intends to heavily invest in emerging technologies over the next couple of years.
According to reports, the Dubai Metaverse Strategy will feature collaborations in research and development to increase the economic contributions of the metaverse and attract foreign businesses. The strategy’s structure is also intended to foster the development of new government work models in the fields of tourism, education, commerce, remote work, medicine, and legislation.
Dubai’s Growing Local Interest in Crypto
Dubai’s plans to focus on digital assets and cryptocurrency is timely since the industry is beginning to enjoy more mainstream attention. The crypto market is one of the most profitable industries. Investors and financial giants are all pouring into the market with funds, creating competition and more chances for profit. According to reports, total venture capital investment in crypto has surpassed $30bn. About $10.5bn of this figure came in the last quarter of 2021.
Local people are already embracing cryptocurrencies in the UAE. For instance, the food delivery firm YallaMarket reportedly proposed paying staff in cryptocurrency and already accepts cryptocurrency payments. Contrary to much of the rest of the world, consumers in the region have a favorable, optimistic attitude toward the idea. Studies reveal that adults in the UAE have a high level of belief in digital assets compared to other parts of the world.
This most likely resulted from the government’s regulatory acceptance of virtual assets. Dubai and the rest of the UAE are becoming filled with people enthusiastic about the crypto market, giving recruiters a pool of local talent to tap from.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
