Notably, Gulf countries have joined the list of crypto-favored regimes. And Dubai appeared as a leading crypto hub currently working on multiple projects to support the blockchain infrastructure and web 3 technology. As a result of which, it attracted many crypto companies worldwide to join the emerging market.
Similarly, blockchain.com, a cryptocurrency exchange and financial service provider for retail and institutional businesses, won a provisional regulatory license from Dubai’s Virtual Asset Regulatory Authority (VARA) on Friday to set up an office in the Gulf’s center of crypto.
Speaking on the grant of regulatory approval, blockchain.com noted in an official blog post;
Known for pioneering innovation in architecture, finance, and travel, the United Arab Emirates aspires to become a hub of global assets and blockchain technology. Dubai is committed to providing the crypto industry with a meaningful center of gravity that also boosts the local economy. The regulatory body’s strategy is to provide meaningful guidelines and regulatory predictability to virtual asset service providers while protecting investors and enabling the growth of the virtual assets sector.
Blockchain.com is not the first company to get approval from VARA, the world’s first regulatory body designed to regulate blockchain and metaverse businesses specifically. Other crypto companies that got licenses before blockchain.com includes OKX and FTX. The London-based blockchain company blockchain.com is already running its subsidiaries in Singapore, North America, Europe, and South America.
Developments and legislation came after the city’s current ruler, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, revealed his intentions to transform the emirate into a global tech hub.
Dubai Ruler Introduced Dubai Metaverse Strategy
In July, the Vice President and Prime Minister of UAE’s defense, Sheikh Hamdan, launched Dubai Metaverse Strategy. It aims to make the emirate the world’s top ten metaverse economies and plans to create more than 40,000 job opportunities in virtual finance by 2030.
In addition, the strategy plans to conduct Research and Development (R&D) collaborations, attract global companies, expand the scope of new content creators and developers, and much more. All the new construction of government buildings will be also liable to build supporting pillars for metaverse technology.
In addition, VARA announced the launch of a new license program and guidelines for crypto-related marketing and advertising services platforms. The new rules cover all types of Virtual Asset Services providers that will need to meet the regulatory policy, alongside revealing any promotional intent of a product so the security measures could ensure users’ protection.
Vara added in a statement;
The principles are supplemented by rigid enforcement standards and penalties for non-compliance that collectively provide market confidence ahead of MVP operations, as it augments marketing, data protection and consumer protection laws that have been well embedded across the UAE.
Featured image from Pixabay, chart from TradingView.com