• Dubai has announced its new crypto regulatory framework, which requires all entities offering one or more crypto-related services to seek authorization and licenses.
• The framework is accompanied by four compulsory rulebooks as well as seven activity-based rulebooks that set out requirements for different types of services.
• Dubai is aiming to become a global hub for crypto and blockchain activity, and is courting companies to set up shop in the emirate.
Dubai’s New Crypto Regulatory Framework
Dubai has unveiled its ambitious new crypto regulatory framework, designed to attract firms seeking regulatory clarity. All entities planning to offer one or more crypto-related services in the jurisdiction must seek relevant authorization and licenses. The framework is accompanied by four compulsory rulebooks for service providers and seven activity-based rulebooks that set out requirements by the type of service offered.
Aim To Become A Global Hub For Crypto And Blockchain Activity
The emirate aims to become a global hub for crypto and blockchain activity, and is courting companies to set up shop in the emirate. By creating a transparent regulatory regime with clear licensing rules, Dubai hopes to create an environment conducive for innovation while ensuring investor protection.
Reaction From The Crypto Industry
The response from the industry has been positive overall, with many praising how “elegantly designed” the framework is. Talal Tabbaa, founder of regional crypto exchange CoinMENA was particularly impressed with this “groundbreaking” effort from Dubai regulators. He noted that it comes at a time when other countries are struggling with knowing where regulation should be headed due to global uncertainty surrounding cryptocurrency markets.
Background on Regulatory Changes
Crypto markets went into a tailspin in 2022, prompting regulators everywhere to double down on setting up or enforcing safeguards which left companies and investors uncertain of their future prospects. This move by Dubai shows that they are serious about creating an enabling environment for blockchain projects within their jurisdiction while ensuring investor protection remains paramount – something other countries would do well emulate if they want their own ecosystems to thrive too.
Conclusion
Dubai’s new regulations show that they are serious about becoming a leader in the global blockchain space whilst protecting investors at all times – something other countries would do well emulate if they want their own ecosystems to thrive too!