Is Dubai becoming a hub of Web 3.0?
The Internet revolution emerged around 23 years ago. The second phase of the development of the Internet is when tech giants like Facebook and Google were created. As the globe transitions to Web 3.0, the United Arab Emirates appears to be leading the race.
Despite Dubai's reputation as a trade hotspot, the UAE government has worked to make the city a major trading center for digital assets. In March 2021, the Dubai Multi Commodities Centre (DMCC), the largest deregulation zone in the UAE, established an administrative framework for cryptocurrency businesses and had already acknowledged 22 crypto-blockchain corporations.
The UAE has advanced its mission to create a framework that can support long-term economic development through digital innovation significantly in recent years.
What are UAE’s Plans?
Web 3.0, Metaverse, and NFTs are the most popular topics in the crypto-verse which are often brought up in the discussions of technology and the future. Dubai is preparing to take over as the global center of cryptocurrency and the majority of the Web 3.0 community is also favoring them. As per the latest news report from CoinGabbar Dubai is preparing to bring its administration to the metaverse. The day when individuals can enter and inhabit the virtual world is here, and Dubai wants control of it.
A memorandum of understanding was signed in September 2021 by the Securities and Commodities Authority (SCA) and the Dubai World Trade Centre Authority (DWTCA) to support the regulation, offering, issuance, listing, and trading of crypto assets and associated financial activities within the free zone of the Dubai World Trade Centre Authority. Separately, DWTCA and Binance disclosed their intentions to develop a brand-new international virtual asset business hub in Dubai.
In December 2021, Dubai World Trade Centre (DWTC) turned into a crypto zone and regulator for cryptocurrencies and other virtual assets. Dubai is constantly pushing the DWTC to establish a specialized zone for virtual assets, including digital assets, goods, operators, and exchanges.
Now, Dubai has introduced its new crypto law to regulate Cryptocurrencies and various other digital assets.
Adopts crypto law
On March 9, Dubai introduced a crypto law in an effort to establish itself as a web 3.0 hub. This law will help them to regulate cryptocurrencies and various other digital assets like NFTs.The United Arab Emirates(UAE) prime minister, Sheikh Mohammed bin Rashid Al Maktoum, tweeted to confirm this crypto law. View Tweet
The UAE plans to create a Dubai Virtual Assets Regulatory Authority (VARA) under this new law, which would be in charge of overseeing digital assets. The Dubai World Trade Centre Authority's Dubai World Trade Centre Authority will manage the regulation, governance, and licensing of cryptocurrencies, NFTs, and other digital assets.
The key duties of the VARA include regulating the creation of new crypto tokens, regulating and managing the trade of virtual assets, making sure that strict security requirements are followed, keeping track of transactions, and more.
The VARA is also responsible for the transfer of virtual assets, management services, exchange services, running platforms for virtual assets, and custody of virtual assets.
Additionally, according to the new rule, no one can engage in crypto-related operations without the Dubai VARA's consent. In addition, people who wish to deal in virtual assets will have to establish a presence in Dubai.
Dubai’s establishment as a Hub
Entrepreneurs are on the search for places where they are encouraged, welcomed, and given several advantages. Countries like Dubai, are rushing to establish advantageous laws and regulations in an effort to draw entrepreneurs and turn them into Web3 epicenters. While other countries like India lagged with their existing regulatory strategy. As per current signs, Dubai has emerged as the top choice for Indian Web3 and cryptocurrency entrepreneurs, and as a result, India is losing out on both talent and newly produced value.
The VARA's implementation by the Emirate of Dubai was the first step in the development of a worldwide wave of Web 3.0 and Virtual Asset adoption that is intended to provide cross-border interoperability following best-in-class industry regulatory requirements.VARA is set up to promote innovation and interaction without sacrificing public safety.
With the establishment of VARA, several exchanges and large corporations are relocating their headquarters to Dubai. According to a CoinGabbar latest news report, Cryptocurrency exchange OKX will expand its offerings in Dubai.
UAE appears to be in the lead in this competition. However, the rest of the globe isn't far behind because the metaverse seems to be experiencing fresh changes every hour.
Conclusion
Dubai is establishing a task force for the digital economy, and one of its top objectives is to be a hub of this new generation of Web. Future economic sectors in the emirate will be developed within the new economic trends.
The emirate might have significantly benefited the digital asset industry by becoming more well-known as the center of the Middle East's crypto and Web3.0 communities.
