Many individuals and companies active in the cryptocurrency industry, such as traders, investors, IT companies, miners, and NFT creators, are looking to relocate to Dubai. The Emirate is jointly strengthening its efforts to create favorable conditions both for doing business and for the comfortable living of such specialists.
Government Regulation and Legal Mechanisms
In the UAE, particularly the Abu Dhabi Global Market (ADGM), regulation of cryptocurrencies and blockchain projects is overseen by the FSRA. This organization guides working with cryptocurrencies and implementing blockchain technologies to ensure transparency and prevent financial crimes and terrorist financing. In the future, cryptocurrency regulation in the UAE may also be complemented by contributions from the Securities and Commodities Authority (SCA) and the Dubai Financial Services Authority (DFSA).
The UAE has a legal framework to oversee the custody, use, issuance, and trading of investment tokens, as well as advisory and insurance services. The government strictly monitors these processes to ensure compliance with the laws.
Dubai tax laws are business-friendly. All tax residents of the city are exempt from paying income taxes regardless of income level. This rule also applies to cryptocurrencies, which have been exempt from taxation in free zones since September 2021. This makes Dubai a very attractive destination for IT companies and professionals who are focused on driving digital transformation in the region.
READ: Real Estate Market in New York: The Situation Is Stabilizing
The UAE is actively implementing blockchain technology to improve government transactions at the federal level as part of digital transformation. Various industries, from energy to media, are now exploring and adopting distributed ledger technologies (DLT) and blockchain.
Dubai Achievements
Dubai Financial Services Authority
In 2016, the Dubai Blockchain Strategy was launched through the joint efforts of the Smart Dubai initiative and the Dubai Future Fund. This strategy included a plan to implement blockchain systems in the city.
Efforts are now being made to increase the efficiency of government organizations in various sectors. One of the companies implementing such programs is DLD. Its benefits include transparency, secure data transfer, and the ability to track document versions during the property registration process. Dubai is also aiming to go completely paperless in the coming years. In 2021, this initiative was led by Sheikh Mohammed bin Rashid Al Maktoum.
In Dubai, Tudegital is responsible for developing and overseeing the implementation of strategies and policies related to information technology, data, digital transformation, and cybersecurity in the city. Digital Dubai brings together experts in these fields to develop relevant sectors in the city.
Dubai Electronic Security Center
The city is actively pursuing initiatives to develop the areas of electronic security, statistics, and data. Experts in these areas are drawn from four organizations: Dubai Electronic Security Center (DESC), Dubai Statistical Center (DSC), Dubai Data Estate, and another unnamed organization.
