Earlier this year, the United Arabs Emirates (UAE) launched the first crypto-economic center in the Middle East in Dubai. It faced certain uncertainties as countries across the globe are tightening regulations on cryptocurrency to keep it under control or ban the digital asset completely.
Dubai Established Cryptocurrency Free Zone Fetching Benefit
After a few months of this innovative initiative to embrace the futuristic goal of cryptocurrency and blockchain, Dubai is “well-positioned to benefit from the growing cryptocurrency market in the Middle East,” as the regulators in UAE move forth accepting and expanding the blockchain-based start-ups and technological developments; as per Bittrex Global’s Chief Executive Officer.
Stephen Stonberg, CEO of the digital assets exchange stated in an interview that UAE and Dubai are “doing all the right things and they’re going to attract a lot of regional projects.”
As Dubai is also known as the commercial hub globally Stephen Stonberg emphasizes that “It is a great place to set up your token project, or run a cryptocurrency exchange,” provided that UAE and Dubai’s tax status are for the “Federal Government on income or wealth of companies and individuals is 0%” [Except for oil and gas and subordinates of certain foreign banks.]
In May Dubai Airport Free Zone Authority got in contract with the Securities and Commodities Authority to establish a special economic zone where cryptocurrency and blockchain-based industries will set up their agencies in the free zone, called DMCC. the purpose was to trade for sugar exchanging last year, and the Bitcoin Fund recorded on the Nasdaq Dubai trade in June, first of its sort.
“I think Dubai is going to do fantastically well,” Stephen Stonberg praises for encouraging cryptocurrency trading and development of blockchain technology, with responsibly put regulations.
“A lot of the institutional money going into Ethereum and Bitcoin is probably really the driver for the market,” Stonberg said. “It’s not so much as retail froth.” [According to Bloomberg]
Cryptocurrency market witnesses a bullish run after months of depleting rates. Tesla Inc. owner Elon Musk and investment manager Cathie Woods eulogizes regarding this. A lot of incidents of political interest and international significance also took place which leads to the rallied up crypto rates.