Dubai Officiates Rulebooks for Crypto Firms as it Prepares to Become Web3 Hotspot
Dubai has been taking several pro-crypto steps to establish itself as a crypto hub. The city has now released a set of new regulations that would be mandated to be adhered to by crypto firms looking to operate from Dubai. Four rulebooks have been prepared for crypto service providers, detailing the regulations. In addition, several other rulebooks have been compiled outlining the laws around activity-based services around the crypto sector. These rules aim to slash the after-effects of any crypto slumps.
Dubai has now imposed an application charge of $27,000 (roughly Rs. 22 lakh) for crypto firms seeking operational permissions, CoinDesk said in its report.
The Emirate has also decided to levy an annual supervision fee of around $55,000 (roughly Rs. 45 lakh) that crypto firms will have to cover if they wish to bag a licence in Dubai.
In case the approval-seeking crypto firm intends to bring services like custody, lending or payments around crypto, they will be required to apply for additional documentation.
By choosing to expand their array of services, crypto firms could avail a 50 percent discount on the application fees.
Binance and Hex Trust, an institutional crypto custody provider, have bagged operational approvals in Dubai.
Last year, Dubai created a special regulatory unit called the Virtual Assets Regulatory Authority (VARA) to oversee crypto-related businesses there.
While regions of the UAE, like Dubai and Abu Dhabi, are working on attracting crypto firms to set offices there, the nation overall is accelerating its efforts to bring out its CBDC.
As part of its Financial Infrastructure Transformation Programme (FIT), the financial authorities of the UAE have begun working on developing the required technical and cyber security support for its blockchain-based e-currency.
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