After Dubai, Another UAE Region Welcomes Crypto-Businesses

Paigambar Mohan Raj
Source: Fintech News Middle East

The United Arab Emirates (UAE) is one of the most cryptocurrency-friendly regions in the world. One of the UAE’s emirates, Ras Al Khaimah (RAK), has announced the creation of the first free economic zone entirely devoted to virtual assets. The economic zone is called “RAK Digital Assets Oasis.” The Oasis will start accepting applications the following quarter, in April 2023.

According to reports, the decision was made at the Blockchain Life 2023 conference. RAK Digital Assets Oasis wants to create a free zone only for companies that offer services related to cryptocurrencies and other digital assets.

The RAK Digital Assets Oasis elected Sheikh Mohammed bin Humaid bin Abdullah Al Qasimi as its chairman. He thinks that the newest cryptocurrency project will strengthen the UAE’s status as the top location for new businesses.

Al Qasimi stated,

“We are building the free zone of the future for the companies of the future. As the world’s first free zone solely dedicated to digital and virtual asset companies, we look forward to supporting the ambitions of entrepreneurs from around the world with our progressive, supportive, and quick-to-adapt approach and our innovation-enabling environment.”

RAK Digital Assets Oasis supports the UAE’s position as a top innovation hub. The free zone will offer a networked atmosphere that is conducive to working remotely.

UAE further strengthening its cryptocurrency initiative

Ras Al Khaimah is one of the emirates to have enacted its own cryptocurrency regulations, joining Dubai and Abu Dhabi in doing so. Additionally, Dubai established a new regulatory body, the Dubai Virtual Assets Regulatory Authority, in March 2022. This organization is in charge of regulating all virtual assets, including Bitcoin and non-fungible tokens (NFTs), throughout the emirate.

The Central Bank of the United Arab Emirates (CUBUAE) has unveiled the Financial Infrastructure Transformation Programme (FIT). Furthermore, one of its nine projects is the introduction of a central bank digital currency (CBDC). The FIT program, according to the bank, is to support the nation’s financial services sector and position it for global competitiveness.

The rise in the number of digital asset companies asking for local licenses is proof of the UAE’s growing significance on the global cryptocurrency map.