Dubai has taken another significant step toward becoming a worldwide digital currency hub. The Dubai World Trade Center (DWTC), a venue for events and exhibitions, has stated its intention to become a comprehensive zone and regulator for digital currencies.
The Dubai World Trade Center (DWTC) is a 38-story skyscraper in Dubai that hosts around 500 events per year and welcomes approximately 3 million visitors worldwide.
According to the release, the decision is in keeping with the government’s efforts to develop new economic sectors. The Center will create a comprehensive ecosystem for the digital currency sector as part of this.
The initiative will seek to cooperate with and collaborate with private-sector parties. This will make the sector more appealing by enforcing strict requirements for investor protection, anti-money laundering (AML), counter-terrorist financing (CFT) compliance, and cross-border deal flow tracing.
The Center will rely on the Securities and Commodities Authority’s (SCA) recent clearance for digital asset trading in its free zone. In September, the SCA announced that the Dubai World Trade Center Authority would issue licenses for digital asset operators within its free zone. According to the SCA, the decision was prompted by a direction from the Ministry of Economy, which has pushed for regulatory collaboration.
The move is one of many in Dubai’s efforts to establish itself as the Middle East’s blockchain and digital currency capital. The Dubai Financial Services Authority developed a legislative framework for investment tokens two months ago, as CoinGeek reported. The regulator announced that the new rule would apply to anybody who wants to issue, trade, or hold investment tokens, dividing them into security and derivative tokens, while pledging to develop more regulations to encompass exchange tokens, utility tokens, and other types of tokens.