The United Arab Emirates is going to make an analog of the Swiss Crypto Valley in Dubai. This news was reported during a performance in Davos International Economic Forum by representatives of the Dubai Multipurpose Commodity Exchange DMCC. The idea is supported by the government and relevant information appeared in the press release of the organization.
This Valley will be organized in the so-called free zone of the country, in the center of the leading business district in the city, where income tax is not levied on individuals and legal entities.
The DMCC also said that Crypto Valley will be designed to stimulate inviolability in the global blockchain economy, its collaboration, and its growth. Crypto Valley will offer its participants a wide variety of services, which include the development of startups in the early stages, innovation services for corporate clients, collaboration tools, blockchain. It will introduce entrepreneurial training, educational courses, various activities, financing, and mentoring assistance.
According to Executive Director and Chairman Ahmed bin Sulayem, this Crypto Valley at DMCC will be able to improve the dynamic business environment of the city and will follow the broader strategy of the government to attract various innovators, entrepreneurs, and pioneers who will lead and determine the future economy.
Founded in 2002, DMCC plans to increase the flow of goods to the UAE. The free zone will also offer a number of benefits such as income tax on individuals and legal entities at 0%. Participants will also be able to transfer all profits made in their countries, without restrictions. Moreover, for the fifth year in a row, DMCC receives the FNI Magazine Financial Times Award, which took place in October 2019. It won out of all 85 nominated free zones.
Dubai Crypto Partners
DMCC began working with Crypto Valley Venture Capital (CV VC), a Swiss investment company and its subsidiary CV Labs, to get Crypto Valley working. They plan to start developing a comprehensive strategy for their DMCC blockchain, which will correspond to the blockchain development plan in the UAE until 2021. The companies signed an agreement in Davos during the WEF.
It should also be noted that the popular cryptocurrency exchange Changelly stated that it is a partner of Epoch BTC, a consulting company that specializes in investing cryptocurrencies in real estate. Meanwhile, Dubai’s Department of Land Resources (DLD) and Etisalat telecommunications company previously agreed to create blockchain technology in real estate together.
In addition, the Dubai BitOasis cryptocurrency exchange has received preliminary approval from the local finance department to provide services as the first regulated platform for storing and trading digital coins in the Middle East.
According to Nigel Green, founder and CEO of deVere Group, the demand for cryptocurrencies in the UAE will thus increase significantly.
There are almost no cons in the news about Crypto Valley, only advantages. For example, the location of the DMCC in the free economic zone gives companies the opportunity to not pay any taxes. This means that those companies that operate from there or any other free zone in Dubai will retain 100% of their profits. In turn, if a cryptographic or blockchain company registered in the UAE operates in DMCC, they will also be exempt from any state taxes.
A DMCC Future of Trade 2018 report found that work on the blockchain will give an opportunity to reduce paper physical use by up to 20% from a global trade perspective. Today, the price of using paper is estimated at about 6.6 trillion dirhams (1.8 trillion US dollars).