Crypto companies can pack their bags to Dubai as DMCC launches crypto centre
DMCC, one of the largest Free Zone for trade and the Government of Dubai Authority on commodities trade and enterprise, has announced the launch of Crypto Centre which is billed as an ecosystem for the development and growth of crypto and blockchain companies.
It will be located in Almas Tower and CV Labs and its VC arm, CV VC, would be providing co-working space for crypto companies which can be start-ups or established ones as well. The idea is to provide a place where all the skills and services needed by crypto and blockchain companies would be available.
“Crypto and blockchain technologies have an enormous potential to transform global trade and supply chains. This aligns perfectly with DMCC’s vision to drive the future of trade and is one of the key drivers behind launching the DMCC Crypto Centre. With a progressive and supportive regulatory environment, a strong pool of industry talent, and an ecosystem that provides access to capital, resources and opportunities to crypto firms, the DMCC Crypto Centre is perfectly placed the support crypto businesses and advance global trade,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC.
“With initiatives such as the Dubai Blockchain Strategy, Dubai’s government is leading the adoption and application of blockchain technologies, creating a business-friendly environment for crypto firms and cementing the emirate’s reputation as a global technology leader,” he added.
Regulatory services and advisory would also be available and”With strong backing from the government as well as great interest from its flourishing business sectors, Dubai is poised to emerge as a global hotspot and leader for innovative blockchain companies and applications,” said Ralf Glabischnig, Founder of CV Labs & CV VC. He added: “Together with DMCC we will be responsible for developing and managing the ecosystem in the UAE with its heart at the DMCC Crypto Center. We will offer a variety of services including incubation and investment opportunities for early-stage startups, innovation services for corporate clients, educational events for Blockchain and entrepreneurship as well as advisory services to assist Crypto/DLT startups to establish themselves in the UAE and grow within our strong ecosystem.”
Crypto companies can build products based on blockchain and also can trade digital assets as well. This will be regulated by UAE’s Security and Commodities Authorities (SCA). It is expected that the regulations would not be as tight as in certain jurisdictions and this would provide a convenient environment for crypto firms to build, grow and trade with ease of business being the topmost on the agenda.
The process for establishing this zone had begun last year and it was in March 2021 that an agreement was signed between the DMCC and the SCA for the establishment of this zone.
The key here seems to be the fact that the government is also on board this initiative and this is very important as the world over, many of the regulatory authorities do not seem to favor crypto businesses, especially crypto exchanges. But with Dubai welcoming businesses based on crypto and blockchain and providing a framework for carrying out crypto trade as well, it could be a key moment for blockchain companies and many of them could seriously consider shifting their business to Dubai to be free from ever-changing regulations.