The country has been constantly touting its vision to be the blockchain capital, publishing frameworks to guide cryptocurrency businesses on how to operate in accordance with the law.

The country’s jurisdiction is divided into home and free zones, where the home regulator is the Securities and Commodities Authority (SCA), and free zones are specific geographic areas within the UAE that have a relaxed tax and regulatory regime.

Such free zones include the Dubai International Financial Centre (DIFC), which is regulated by the Dubai Financial Services Authority (DFSA), the Abu Dhabi Global Market (ADGM), which is regulated by the Financial Services Regulatory Authority (FSRA), and the Dubai Multinational Market, which is regulated by the SCA. Kinds of Commodities Center (DMCC).

In an interview with Cointelegraph, Kokila Alagh, founder and CEO of Karm Legal Consulting, shared a brief overview of the regulatory landscape in the country. According to Alagh, the SCA, the continental regulator, provides certainty and opportunity for cryptocurrency and blockchain businesses:

Alagh said, “The DMCC is one of the most advanced regulators in the field and has pioneered the development of the cryptocurrency ecosystem in the UAE. The DMCC is a cryptocurrency-friendly regulator that provides businesses with a friendly startup framework.”

Meanwhile, cryptocurrency exchange Binance has embarked on a partnership with the UAE government to assist cryptocurrency exchanges and businesses in obtaining licenses in Dubai. The company signed a memorandum of understanding with the Dubai World Trade Centre Authority to launch a crypto hub in Dubai.

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