OWNR Wallet blog background

Emirate of the UAE Launches a Free Zone for Crypto Companies

The Arab emirates' authorities are loyal to cryptocurrencies and blockchain, actively promoting the development of the technology and attracting investment in it, as well as in the state's economy.

  • Ras Al Khaimah, one of the UAE's seven emirates, plans to establish a free zone for businesses developing cryptocurrency solutions.

Such an approach of the authorities allows them to attract major crypto-players and makes them interested in investing in the economy of the emirate.

The RAK Digital Assets Oasis 

To implement this plan, the RAK Digital Assets Oasis (RAK DAO) is created. Its goal is to develop innovations in the field of cryptocurrency and blockchain.

  • Applications for crypto startups and developers wishing to participate in such a project will open in the 2nd quarter of 2023.

This free zone is being created for cryptocurrency service providers working in these most progressive fields of activity. 

Among them, the most prominent are: the development of an ecosystem of DAOs, creating new blockchains, metaverses, issues of tokens, including NFTs, and various tools supporting the cryptocurrency ecosystem - wallets, different dApps, and various Web3 solutions.

Government support

RAK DAO in Ras Al Khaimah is the 1st free zone in the world, established exclusively for crypto startups. Local authorities have enormous plans for its prospects.

The UAE authorities are actively developing free zones or free trade zones within the Emirates. These territories have their own tax rules and incentives governed by a regulatory framework.

  • The newly created free zone is a part of the overall financial ecosystem of the country, which consists of more than 40 multifunctional zones of free trade.

These oases of accelerated development and tax incentives in the country have already attracted numerous crypto, blockchain, and Web3 startups, including Dubai Multi Commodities Centre (DMCC), DIFC, and ADGM.

Conclusion

The UAE is one of the most favorable places for the development of crypto companies, attracting them to this jurisdiction with its friendlier regulation and loyal approach to modern technology and innovation.

  • In March 2022, Dubai released a law on virtual assets. It also established the Virtual Asset Regulatory Authority. 

These measures aim primarily to protect investors and develop the standards for the cryptocurrency industry. They help to actively attract funds into the state's economy, in particular by creating different free zones in the territory of the emirates.

In September 2022, the Financial Services Regulatory Authority, the ADGM regulator, released guidelines, codifying the state's approach to the regulation and supervision of cryptocurrencies and service providers in this area.

Keep reading

Global Mining: Regions with the Best Conditions for Cryptocurrency Mining

Global Mining: Regions with the Best Conditions for Cryptocurrency Mining

30 November 2023

Miners have been mining Bitcoin for 14 years, and this activity significantly impacts various aspects of daily life. Let's explore which regions offer the most favorable conditions for cryptocurrency mining.
Read more
Harnessing automated trading tools can be a game-changer in the highly volatile world of cryptocurrency trading.

Harnessing automated trading tools can be a game-changer in the highly volatile world of cryptocurrency trading.

29 November 2023

The cryptocurrency trading landscape has become increasingly demanding, especially in the midst of the crypto winter. Automated trading presents a viable solution to mitigate several of these challenges and enhance traders' chances of success.
Read more
Crypto Nightmares: Stories of Vanished Bitcoin Wallets

Crypto Nightmares: Stories of Vanished Bitcoin Wallets

24 November 2023

From unintended deletions to mysterious thefts, tales of lost Bitcoin underscore the critical significance of robust security practices in the cryptocurrency realm.
Read more