To attract new businesses, the Dubai World Trade Center (DWTC) will become a crypto zone and regulator for crypto assets, said the Dubai Media Office this week.
DWTC’s move to create a specialized zone for cryptocurrency, which covers crypto exchange, products, operators, and exchanges, is part of Dubai’s plan to develop new economic sectors.
“Rigorous standards for investor protection, anti-money laundering, combating the financing of terrorism, compliance and cross border deal flow tracing” will be developed, it said in a statement.
After DWTC announced its plans to set up an international crypto ecosystem, leading crypto exchange Binance said on Tuesday that it had signed a cooperation deal with Dubai World Trade Center Authority.
Binance will be assisting the development of crypto regulations in Dubai, which its CEO Changpeng Zhao said will be “appropriate to fit the fast-moving and progressive nature of virtual assets.”
“The goal is to help crypto exchanges, or businesses that offer blockchain and DLT services, or a wide range of digital currencies and assets to become licensed in Dubai,” said the exchange.
Just a couple of months back, the UAE Securities and Commodities Authority, along with the DWTCA, agreed on a framework under which the latter will approve and license financial activities relating to crypto-assets.
Then in October, Dubai's state-owned financial free zone DIFC released the first part of a crypto’s regulatory framework.
No Room for Cryptocurrency
While Dubai embraces crypto, Russia’s Central Bank is taking a firm stance against digital assets.
Bank of Russia Deputy Governor Vladimir Chistyukhin hinted this week that private cryptos might soon no longer be allowed to be used in the country's financial markets, according to a TASS news agency report.
“I'll give you a hint: We do not see room for cryptocurrency on the Russian financial market,” Chistyukhin was quoted as saying. Furthermore, he said that the central bank is currently working on a report with proposals to limit the use of such currencies in the country.
Just last week, the central bank was reported saying that they see risks from crypto to financial stability and advocate a “complete rejection” of them. Governor Elvira Nabiullina has also said that the Bank can’t support investments in crypto.
Meanwhile, the Bank of Russia is joining the global trend to develop its own digital currency (CBDC) to speed up payments and help modernize financial systems.