Each country is trying to develop its own rules for regulating cryptocurrencies. The UAE is one of the world leaders in this industry. At the moment, this is one of the most favorable territories in terms of crypto investments and the development of blockchain companies. At the moment, most crypto exchanges are doing incredibly well here.
What is blockchain, and how does it function in the UAE?
Blockchain is a unique database. Many perceive it as a software environment for cryptocurrencies. On the one hand, this is true because crypto-assets cannot exist without this technology, and on the other hand, it can be used in other areas, for example:
- Logistics;
- Tourism;
- Agriculture;
- Management and much more.
Today in the UAE, many companies use this technology for different purposes. In addition, in 2016, the ruler of Dubai presented a strategy that aims to make this city the first to use the blockchain fully. The strategy has 3 main elements:
- Improving government efficiency through blockchain;
- Creation of a new crypto industry;
- Becoming a world leader in the dissemination of this technology.
Dubai created the Global Blockchain Council to implement this strategy, including 46 different participants (banks, government, and private organizations from other countries).
Also, in the UAE, several government programs have been developed that involve solving several problems using the blockchain, for example:
- Authentication of bank checks;
- Control over the work of the Land Department;
- Vehicle Life Cycle Control and much more.
In addition, blockchain is becoming an ideal way to prevent corruption.
Indeed, Dubai today is a world center for developing and distributing blockchain. It is assumed that many other advanced cities worldwide will appreciate the benefits of such a solution and will also implement this technology in their work.
Rules for the functioning of cryptocurrencies
There is an opinion that most of the wealthiest residents of Dubai invest or have savings in cryptocurrencies. It is not surprising because it allows you to receive additional income, perform various transactions and save on banking operations.
Dubai is the undisputed leader in its region in terms of cryptocurrency turnover. Most of the users here traditionally use Bitcoin and Ethereum. These are the most popular crypto assets in the world.
The Central Bank believes that the use of cryptocurrencies has a lot of risks. There are a lot of scammers in this industry. That is why the FRSA and SCA regulatory bodies have been appointed, whose responsibilities include issuing licenses to operate crypto companies, monitoring their work, and identifying fraudsters and intruders.
So, if a crypto exchange or e-wallet wants to work legally in the UAE, you need to get a license. To do this, you need to register a company, collect many documents, and submit an appropriate application to government agencies. If you have not previously been involved in fraudulent transactions, then the likelihood of obtaining a work permit remains relatively high.
Overall, it’s safe to say that Dubai is one of the most blockchain and crypto-friendly places globally. Most residents here know firsthand the benefits of this technology.
It is assumed that the entire world community is not yet ready for such actions, however, it can be said with confidence that many developed countries can already follow this example.