Saturday, December 9, 2023

UAE Stands Out With Crypto-Friendly Policies And Law

Recognizing the potential of bitcoin and digital assets, the United Arab Emirates stands out from the rest of the world with its crypto-friendly policies and law. UAE has special jurisdictions and free zones with relaxed taxation and regulations for crypto businesses. This includes the Dubai International Financial Centre (DIFC), Abu Dhabi Global Markets (ADGM) and the Dubai Multi Commodities Centre.

Kokila Alagh, the founder and CEO of Karm Legal Consultants, told Cointelegraph that the Securities and Commodities Authority (SCA) provides assurance and opportunities for crypto and blockchain businesses. The SCA, which has emerged as a progressive regulator, operates in the mainland. It has opened new opportunities in the UAE.

Alagh highlighted that SCA understands the potential and vitality of this sector. It has been continuously developing frameworks to accommodate the emerging technologies – DLT and blockchain. The Financial Services Regulatory Authority (FSRA) was the first to establish digital asset regulations in 2018. Alagh highlighted that ASGM was one of the first regulators in the world to launch digital securities regulations with guidance on virtual assets. It is among the incomparable jurisdictions for established blockchain companies.

He shared that the Dubai Financial Services Authority (DFSA) is one of the initial regulators from the major financial free zone. It has implemented regulations for security tokens. The current DFSA regulations safeguard the tokenization of securities. This is through blockchain and distributed ledger technology. It includes the tokenization of shares, bonds, derivatives, certificates, and debentures. The regulator is also looking at drafting laws for fungible cryptos, stablecoins, and non-fungible tokens.

Alagh said the Dubai Multi Commodities Centre (DMCC) gave special licenses such as the proprietary trading in crypto commodities license and the DLT technology service provider license. Moreover, the DMCC has a crypto-dedicated centre “Crypto Oasis”. more than 130 blockchain companies are registered here. Describing DMCC as one of the most advanced regulators, Alagh said it has led the way for the crypto ecosystem in the UAE.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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