The Dubai World Trade Center will become a comprehensive zone and regulator for cryptocurrencies as part of an initiative by the Dubai authorities to create a friendly environment for the cryptocurrency sector.
The United Arab Emirates (UAE) is becoming an increasingly crypto-friendly jurisdiction. The Dubai government has launched a new initiative to support the development and regulation of cryptocurrencies at the local level, under which the Dubai World Trade Center (DWTC) will become a cryptocurrency regulation area.
DWTC will partner with private companies to create an attractive environment for the cryptocurrency sector and enforce standards for investor protection, anti-money laundering (AML), and terrorist financing (CFT).
The government of Dubai said in a press release:
“As a part of Dubai government efforts to create new economic sectors, it was announced today that the Dubai World Trade Centre (DWTC) will become a comprehensive zone and regulator for virtual assets and crypto including digital assets, products, operators, and exchanges.
The Dubai World Trade Centre will collaborate with the private sector and relevant entities in Dubai to create an attractive environment for the sector, and enforce rigorous standards for investor protection, Anti Money Laundering (AML), Combating the Financing of Terrorism (CFT) compliance, and cross border deal flow tracing.”
The Dubai government is actively involved in regulating the sector. In October, Dubai Police announced a partnership with local firm BitOasis to train police officers in detecting fraudulent schemes in crypto trading. In addition, the Dubai Financial Services Authority (DFSA) has developed a regulatory framework for regulating digital tokens.