UAE plans to establish a free zone for digital and virtual asset firms

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Key Takeaways:

  • In Q2 2023, Ras Al Khaimah in the United Arab Emirates will open a free zone for businesses dealing in digital and virtual assets.
  • Sheikh Mohammed bin Humaid bin Abdullah Al Qasimi, the chairman of RAK International Corporate Centre (RAK ICC), made the statement at the Blockchain Life 2023 event.

One of the United Arab Emirates’ (UAE) emirates, Ras Al Khaimah (RAK), has declared the establishment of the first free economic zone solely devoted to virtual assets and digital businesses.

Due to its benevolent laws towards the digital asset industry, the United Arab Emirates (UAE) continues to draw in international crypto players. The most recent development is the opening of a free zone in Ras Al Khaimah specifically for businesses dealing in digital and virtual assets.

RAK Digital Assets Oasis” is the name of the aforementioned economic zone. The following quarter, in April 2023, The Oasis will begin taking applications. A “purpose-built, development free zone for unregulated activities in the virtual assets sector,” the RAK Digital Assets Oasis (RAK DAO) will be created.

Free zones, also referred to as free-trade zones, are commercial areas where company owners own 100% of their companies and frequently enjoy preferential tax policies.

The announcement comes weeks after UAE’s plans to launch a central bank digital currency were made public. The Central Bank of the United Arab Emirates recently unveiled a new plan to speed up the digital transformation of the financial services sector, which includes open finance and a new digital currency.

The decision was announced this week at the Blockchain Life 2023 meeting, according to Persian Gulf media.

Sheikh Mohammed bin Humaid bin Abdullah Al Qasimi was chosen as the RAK Digital Assets Oasis’ director. He believes that the newest cryptocurrency initiative will enhance the UAE’s reputation as the best place for start-up companies.

The new free zone joins the nation’s more than 40 multidisciplinary free zones, such as the Dubai Multi Commodities Centre (DMCC), DIFC, and the ADGM, that have drawn multiple blockchain, cryptocurrency, and Web3 companies.

Digital Properties RAK Oasis wants to create a free zone that is solely for service providers of cryptocurrencies and digital assets working in emerging industries like blockchain, NFTs, DApps, DAOs, and projects connected to the Web 3. This will be the world’s only open zone that is of this sort.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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