Expert: UAE can become the capital of the blockchain

Эксперт: ОАЭ могут стать столицей блокчейна.

  • Legal expert comments on the UAE legislation on cryptocurrencies
  • He is confident that the country is making its way to the title of the world blockchain capital
  • Regulators in the UAE set course on the settlement of digital assets and licensing of crypto exchanges, and not their prohibition

Founder and CEO of Karm Legal Consultants Kokila Allah was interviewed by Cointelegraph. In it, he shared his vision of the future of the UAE’s legal framework, and also admitted that the country is preparing the ground for the adoption of cryptocurrencies and blockchain technology.

It is important that there are several economic zones in the Emirates. They can be divided into two categories – the mainland and the SEZ, the so-called “islets”. Separate tax legislation is in effect here, which has a good effect on the development of the market.

On the mainland, the Securities and Commodities Authority (SCA) is the regulator. This is how the work of the department is assessed by the legal expert Kokila Allah:

SCA can be considered a progressive regulator , their regulatory framework provided certainty, gave new opportunities in the UAE.”

There are nine free economic zones in the UAE. But in the context of the cryptocurrency market, the following are the most interesting: the International Financial Center (DIFC, regulator – DFSA), the Abu Dhabi Global Market (ABGM, regulator – FSRA) and the multidisciplinary commodity and raw materials zone (DMCC, regulator – SCA).

For example, in 2021 FSRA was the first to introduce rules regarding the cryptocurrency sphere. Kokila Allah considers that it is one of the best legal areas for the cryptoindustry in the world.

As for the DMCC, this is where crypto exchanges can get a license. Also in this zone there is a separate cluster for industry companies – Crypto Oasis. It contains about 200 blockchain firms. Together, this makes the UAE one of the best countries for organizing and doing business in the crypto industry. Unlike those jurisdictions where digital assets are in a hurry to ban, the Emirates see the prospect of this direction. No wonder the country can conquer the title of the world blockchain capital.

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