In the UAE, Dubai is considered to be the biggest free economic zone, with no corporate or personal income tax has commenced the issuance of permits to firms trading in digital currencies. A gold trader that has just begun providing virtual currency services, is the first to be issued a license.
Dubai welcomes digital currency companies
In order to strengthen commodity trade flows through Dubai, the Dubai Multi Commodities Centre (DMCC) which is a government body was found in 2002. In the UAE, DMCC zone is the biggest and quickest expanding free economic zone. In addition, as of now, the DMCC constitute of more than 14,100 Multi-national Corporation and startups, with about 90,000 people residing and working there.
On Monday, the center has begun the issuance of licenses to permit companies to involve in virtual currency trading to conduct business in the free zone as described by Thomson Reuters Zawya.
Sanjeev Dutta explained that the Center is starting to enable a gateway for virtual currency market which he admitted was not regulated. He also indicated that on a “case-by-case” basis, companies will be permitted to establish in the free zone economy.
Virtual Currencies as Financial instruments
The DMCC came into existence as a Dubai Smart City project and celebrates a membership of 46 member organization worldwide as of now. The DMCC is also a member of the Global Blockchain Council.
Furthermore, a worldwide unanimity is taking shape in which classifying virtual currencies as commodities are becoming more favorable explained Franco Bosoni, DMCC head of innovation hub.
Moreover, on Sunday, the head of capital markets for Abu Dhabi Global Markets Regulatory Authority explained that the relevant authorities are considering and assessing the creation of a vigorous risk suitable supervision and monitoring model that will be used for intermediaries and crypto exchanges. He also stresses that a timeline towards this objective has not yet been adopted.
Gold Traders becomes first to be issued a license
Regal Assets, a gold trader, and storage provider with branches in the UAE, Canada, and the US has been reported to be the first company to obtain a license to start operating in the virtual currency market. At the end of the previous year, the company included virtual currencies to its product list which comprise of a high-security cold storage facility for bitcoin, ether, bitcoin cash, ethereum classic, ripple and dash which is insured and also provide brokerage services.
Ahmed Bin Sulayem, DMCC Executive Chairman also explains that “At the heart of DMCC’s long-term strategic growth plan is the use of technology and innovation to disrupt and connect new markets, industries and customers,” adding that “the announcement today embodies this approach.”