Dubai has taken several pro-crypto moves to establish itself as a crypto hub. The city has now released a new set of regulations that crypto firms wanting to operate out of Dubai must comply with. Four rulebooks have been created for crypto service providers detailing the regulations. In addition, several other sets of rules have been compiled outlining the laws governing activity-based services in the crypto sector. These rules are aimed at curbing the aftermath of crypto collapses.
Dubai has now charged an application fee of $27,000 (about Rs. 22 lakh) for crypto firms applying for operating licenses, CoinDesk said in its report.
The emirate has also decided to charge an annual surveillance fee of around US$55,000 (roughly Rs. 45,000) for this crypto companies need to cover if they want to get a license in Dubai.
If the permission-seeking crypto firm intends to offer services such as custody, lending, or payments cryptoneed to apply for additional documents.
By deciding to expand their range of services, crypto firms could get a 50 percent discount on application fees.
binance and Hex Trust, an institutional crypto custody provider, have received operating permits in Dubai.
Last year, Dubai created a special regulatory entity called the Virtual Assets Regulatory Authority (VARA) to oversee crypto-related businesses there.
While regions of the UAE, such as Dubai And Abu Dhabiworking to attract crypto firms to set up offices, the nation as a whole is accelerating efforts to get theirs out CBDC.
As part of their Financial Infrastructure Transformation Program (FIT), the UAE’s financial authorities have started working on developing the necessary technical and cyber security support for their blockchain-based e-currency.
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