The largest free economic zone in the UAE, with zero percent personal and corporate income tax, has started issuing licenses to firms trading cryptocurrencies. The first license has been issued to a gold trader that has recently started offering cryptocurrency services. Today, more than 14, multinational corporations and startups call DMCC home, with almost 90, people living and working there. The Centre has started issuing licenses to allow firms trading in cryptocurrencies to operate from its free zone, Thomson Reuters Zawya reported on Monday.
To me, what is important is the fact that you are still evaluating it as part of your innovation strategy. Emphasizing that no timeframe has been set, he added:.
As we develop our framework, we will also want to check in and have the conversations with, for example, US regulators, Japanese regulators and so on and so forth, so that there is some alignment of approach to avoid any regulatory arbitrage. Do you think more crypto companies will move to this free economic zone? Let us know in the comments section below. Need to calculate your bitcoin holdings?
These days bitcoin and a variety of other digital assets are now being traded as funds and traditional equity holdings. Crypto financial services company Blockfi has launched a trading platform supporting three cryptocurrencies. The new offering adds to the company's… read more. A student of Austrian Economics, Kevin found Bitcoin in and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
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Cryptocurrencies as Commodities
In Dubai, there is no taxation for individuals and companies — that is why the largest free economic zone is located. And recently, exchanges that sell virtual money in this area have started getting licenses. According to some press reports, the first license was given to Regal Assets that trade precious metals. According to Bloomberg, Regal Assets is the first company in the area that received the permit for cryptocurrency operations. Dubai Commodity Center said that the storage of virtual coins offered by Regal Assets was located in their main office in the country. The decision to start issuing licenses was difficult to make, and it would have been impossible without the creation of the Dubai Commodity Center DMCC 16 years ago, which increased the transfer of goods through Dubai.
Ripple to Open Dubai Office
Cryptocurrency projects rise in popularity and become more and more diversified. Ignoring this fact is not an option anymore, so governments around the world must develop policies to regulate them. At the beginning, UAE was among the countries that tried to neglect the new technological improvements. Nowadays, it is one of the best countries for cryptocurrency projects in the world. To operate a legal business with cryptocurrencies, you need to obtain a crypto license in UAE. It can be used for providing crypto-related services to customers, such as storing their coins.
Regulatory Sandbox Licenses are Valuable Testing Periods
Cryptoasset activities include: a buying, selling or exercising any right in Accepted Crypto Assets whether as principal or agent ; b managing Accepted Crypto Assets belonging to another person; c making arrangements with a view to buying, selling or providing custody of Accepted Crypto Lidense to another person whether as principal crgptocurrency agent ; d marketing of Accepted Crypto Assets; e advising on the merits of buying or selling Accepted Crypto Assets or any rights conferred by such buying or selling; and f operating i a Crypto Asset Exchange, or ii as a Crypto Asset Custodian. ArabianChain will start with a limited number of select users to test and optimise the process and then expand to the rest. Further, the only authority issuing exchaneg for certain cryptocurrency activities is the DMCC, which include but are not limited to activities involving real estate, gold, silver, tea. The new offering adds to licenwe company's… read. It is clear that the Cryptocurrency exchange license in dubai Government has taken the initiative with cryptocurrencies, so there is no doubt that the regulatory regime will be developed accordingly. To strengthen its vision, the UAE Government recently issued regulations on the use of cryptoassets, including cryptocurrencies. These days bitcoin ilcense a variety of other digital assets are now being traded as funds and traditional equity holdings. For big investors, moving their headquarters cryptocurrency exchange license in dubai Dubai is not a problem if they live in an oppressive country. Emphasizing that no timeframe has been set, he added:. The UAE and Dubai have been involved in cryptocurrency businesses .