CryptoForDay

Your daily dose of crypto news

Dubai: Crypto’s Silicon Valley

2 min read

Dubai: Crypto's Silicon Valley

Professionals working in the crypto industry believe that despite the lengthy process, obtaining a license in Dubai is worthwhile. The Virtual Assets Regulatory Authority (VARA) in Dubai has implemented strict requirements for the crypto space, which can take up to a year to complete. Tao Xiao, managing partner of NH Management, described the licensing process as intricate and demanding, with a focus on compliance with Anti-Money Laundering and Know Your Customer regulations. Xiao emphasized that Dubai’s stringent regulatory framework reflects its commitment to market integrity and investor protection.

In 2022, the UAE was placed on the Financial Action Task Force’s gray list due to increased monitoring. As a response, the UAE introduced comprehensive guidelines and laws to combat money laundering, leading to its removal from the gray list in February 2024. This removes additional scrutiny from the FATF. Xiao acknowledged that compliance can be challenging but believes there are many benefits to obtaining a license in Dubai, including access to global markets, favorable tax policies, and a safe environment for financial technology innovation.

Sam Blatteis, CEO and co-founder of The MENA Catalysts, echoed this sentiment and compared Dubai to Silicon Valley for its support of the crypto industry. Despite its small size, Blatteis emphasized Dubai’s potential, citing its high-income economy, widespread financial services, and growing adoption of crypto use cases. Blatteis advised companies looking to expand into the UAE to undergo strategic recalibration and seek guidance from those who have navigated the licensing process successfully.

Chainlink co-founder Sergey Nazarov expressed his admiration for Dubai and the UAE’s regulations. Nazarov commended the increasingly progressive regulation and the convergence of teams from around the world in Dubai. He described the government, regulators, legal system, and economics of Dubai as highly attractive to the crypto industry. Professionals in the crypto industry recognize the benefits of obtaining a license in Dubai despite the lengthy process, citing the city’s commitment to compliance, market integrity, and innovation.

5 thoughts on “Dubai: Crypto’s Silicon Valley

  1. The growing adoption of crypto use cases in Dubai doesn’t mean the licensing process is any easier. It’s still a struggle. 😤

  2. Being on the gray list was a red flag for the UAE’s reputation in combating money laundering. It’s not something to be proud of. 🚩

  3. Dubai’s increasingly progressive regulation is commendable. The convergence of teams from around the world reflects the city’s attractiveness to the crypto industry. 🌍🌟

  4. Compliance, market integrity, and innovation are important, but the licensing process in Dubai is a major obstacle.

  5. Compliance with Anti-Money Laundering and Know Your Customer regulations is such a headache when applying for a license in Dubai.

Leave a Reply

Copyright © All rights reserved.