Topic: Dubai Mandates Licensing for Crypto Companies (Read 823 times)

https://cointelegraph.com/news/dubai-court-recognizes-crypto-salary-payments
Dubai court recognizes crypto as a valid salary payment
"In a significant update to the United Arab Emirates’ judiciary approach to crypto, the Dubai Court of First Instance recognizes salary payments in crypto as valid under employment contracts.

Irina Heaver, a partner at UAE law firm NeosLegal, explained that the ruling in case number 1739 of 2024 shows a shift from the court’s earlier stance in 2023, where a similar claim was denied because the crypto involved lacked precise valuation.

Heaver believes this shows a “progressive approach” to integrating digital currencies into the country’s legal and economic framework.

Dubai court recognizes inclusion of tokens in salary
Heaver said that the case involved an employee who filed a lawsuit claiming that the employer had not paid their wages, wrongful termination compensation and other benefits.

The worker’s employment contract stipulated a monthly salary in fiat and 5,250 in EcoWatt tokens. The dispute stems from the employer’s inability to pay the tokens portion of the employee’s salary in six months.

In 2023, the court acknowledged the inclusion of the EcoWatts tokens in the contract. Still, it did not enforce the payment in crypto, as the employee failed to provide a clear method for valuing the currency in fiat terms.

“This decision reflected a traditional viewpoint, emphasizing the need for concrete evidence when dealing with unconventional payment forms,” Heaver said. "

https://www.coindesk.com/policy/2024/04/11/dubai-regulator-wants-to-lower-the-cost-of-compliance-for-small-crypto-firms/
Dubai Regulator Wants to Lower the Cost of Compliance for Small Crypto Firms
"While Dubai's regulatory rules were broadly welcomed, some firms worried about the expense.
Dubai's Virtual Assets Regulatory Authority is investigating ways to lower the cost for firms to comply with its rules.
Dubai unveiled a regulatory regime for crypto last year."

The mandate of licensing for crypto companies in Dubai is made  for several reason and for me it’s make sure there is continuous and reliability. This policies help to ensures compliance with regulatory standards, fostering trust and stability in the crypto market. it helps prevent fraud and illegal activities, safeguarding investors and the financial system.when you talk about financial systems cases of fraud are very crucial and important to handle with the of country Dubai practice it system of governance and accountability.

https://www.theblock.co/post/282811/dubai-difc-digital-assets-law
Dubai’s tax-free economic zone DIFC enacts new Digital Assets Law
"The Dubai International Financial Centre has announced the enactment of its new Digital Assets Law.
The legislation aims to ensure the DIFC keeps pace with technological developments and to provide legal clarity for investors and users of digital assets."

The Financial Services Regulatory Authority (“FSRA”) has announced revisions to its Anti-Money Laundering and Sanctions Rules and Guidance (“the AML Rulebook”).

The FSRA has made revisions that clarify the requirements that previously appeared in the AML Rulebook, reflecting the federal regulatory framework the UAE has put in place to combat money-laundering, the financing of terrorism and proliferation financing and ensure compliance with targeted financial sanctions. In particular, minor drafting changes have been made to the provisions relating to wire transfers in order to provide greater clarity that the FATF “Travel Rule” applies to Virtual Assets.

https://www.msn.com/en-us/money/companies/dubai-s-top-crypto-official-set-to-leave-after-less-than-a-year/ar-AA1k1iBQ
"(Bloomberg) -- The head of Dubai’s crypto regulator is poised to depart after less than a year on the job, just as authorities prepare to impose sweeping fines on non-compliant digital-asset firms operating in the emirate.

Henson Orser, who’s run the Virtual Assets Regulatory Authority since January, will be replaced by Matthew White, a partner at PwC who has worked with VARA as a consultant, the regulator said in a statement to Bloomberg News on Thursday. A leadership transition will take place “over the coming months,” VARA said. "

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Sorry for the cynicism, but in order to shave hamsters, they first need to be replaced in a convenient place.

https://www.prnewswire.com/in/news-releases/adgm-introduces-the-worlds-first-dlt-foundations-regime-301975937.html
ADGM introduces the world's first DLT Foundations Regime
   
"An innovative, purpose-built regime that addresses the unique legal requirements of Blockchain Foundations, Decentralised Autonomous Organisations (DAOs), and the broader crypto industry.
The new regime is set to enable positive transformation across the blockchain and Web3 landscape, fostering a more transparent and efficient future."

https://in.investing.com/news/bitoasis-license-revoked-by-dubais-crypto-regulator-3719206
"Two notices were issued on July 10 by the Virtual Assets Regulatory Authority (VARA).
The regulator did not specify which requirements BitOasis had not met.
Due to BitOasis’s failure to comply with regulatory requirements within the allotted time limit, the crypto regulator in Dubai has suspended the exchange’s operating license.

Two notices were issued on July 10 by the Virtual Assets Regulatory Authority (VARA). Stating that enforcement action had been taken against BitOasis and that the Dubai-based company was under review."

This is one of the major reasons why we see investor and crypto lovers going to dubia to have a nice time there. There government knows  how to attract tourists to the country and investors that will come to develop there state. If other countries would establish something similar to what the UAE is doing, the world of cryptocurrency world be safe and friendly to everyone, not like the SEC that was trying to send Binance out of the United States for no reason with aggressive sanction.
 I am very happy that we have countries that have plan for cryptocurrency investors with a friendly environment for everyone.

https://www.reuters.com/article/idUSL8N37S1OO
"DUBAI (Reuters) - The UAE Central Bank has issued new anti-money laundering and counter-terrorism financing guidance for financial institutions when dealing with virtual assets, such as cryptocurrencies and non-fungible tokens, it said on Wednesday.

The new guidance discusses the risks arising from dealing with virtual assets and virtual asset service providers, including on due diligence for licensed financial institutions when dealing with these customers and counterparties, the statement said.

The guidance, which will come into effect within a month, applies to banks, finance companies, exchange houses, payment service providers, registered hawala providers and insurance companies, agents and brokers."

This seems a little off topic, but since we wear paid signatures, the above text does not contain any personal effort from the user. If you put it inside quotes, you will not be paid because it is less than 150 words.
It is true that mods do not ban accounts, but it is better to avoid that.
So in any case, it is better to quote the text away from your words, or to separate the quote from personal effort.



More https://bitcointalksearch.org/topic/tips-to-avoid-plagiarism-5133485

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I hold nothing against @safar1980. My comment above does not refer to his behavior. I respect him. The above disclaimer is general and does not mean him or anyone.

Are you sure that you need to put quotes along with the link?
If I haven't forgotten, quotes should be used when there is no link.
If the user posted a link, then such a post should not be considered plagiarism.
There are many posts on the forum without quotes if a link is provided.

I searched for a reliable source for this news and did not find it. All the articles appear from Bitcoin-related sites and almost all of them have the same format as the above news, but there is no indication of the design of the tower, the financier or the developer company, the place of implementation or any reliable data.
the name of Salvatore Leggiero was mentioned, and I searched for him, and I did not find any news about building a Bitcoin project or an experimental model for it.
Unless accurate data appears, I do not think it is true news.

All the above response is quoted, I hope you attach the quotation mark, otherwise you will be banned.

BITCOIN TOWER, the first one in the world, will be built in Dubai
The commitment to celebrating the importance, notoriety, and values of Bitcoin has led to the creation of a new hotel chain in the shape of the king of cryptocurrencies. The hotel chain also embraces new technologies of blockchain and artificial intelligence with attention to material sustainability and zero CO2 consumption, inspired by the upcoming COP28 summit in Dubai.

The hotel chain has taken a unique approach to rewarding its guests by offering NFTs, which also provide exclusive utilities to the holders. Moreover, the rental price will be considered as staking of crypto and will produce an APY that guests can redeem. Salvatore Leggiero, the developer of the project, states, ‘It will be the first hotel that gives you back the money you paid, plus interest.’

I agree with you because Experience and Practice can only be found in Dubai. And then you will figure out how to proceed further. Legislation is changing, but Dubai has proven to be the most progressive in the crypto industry.
https://www.thenationalnews.com/business/cryptocurrencies/2023/05/08/coinbase-considering-uae-as-potential-international-hub-says-ceo/
Coinbase considering UAE as potential international hub, says CEO
Emirates' approach has been more forward thinking than the US, Brian Armstrong says

I have read the entire article, but it is a journalistic article of the development of legislation related to cryptocurrencies in Dubai, and it cannot be relied upon as a reference for those who want to know the regulatory framework in that country. Even talking about some laws was very superficial, but from what I understood, laws within the country differ from one emirate to another. And that the non-strict laws are of the Dubai Financial Services Authority (DFSA), which is the regulator in the Dubai International Financial Center (DIFC) region, while 6 Emirates do not have clear legislation.

About cryptocurrency and taxes in Dubai
This article outlines the legal and regulatory framework governing virtual assets such as cryptocurrencies in the United Arab Emirates (UAE) and in Dubai specifically. After exploring how cryptocurrency is regulated in the UAE and whether investing in cryptocurrency is legal in said jurisdiction, the article will also explore how cryptocurrency is taxed in Dubai, what the applicable legal framework for digital currencies and virtual assets is, and how to invest in Bitcoin (BTC) in Dubai.
https://cointelegraph.com/learn/cryptocurrency-regulation-in-the-uae-and-the-dubai-virtual-assets-law

At least they are not banning the entire crypto industry, sooner or later all countries will regulate crypto since the crypto space is growing and the money is great why not regulate and put tax on it right hehehe.

and about the privacy coin  of course, it will happen too when the Centralized Exchange start doing KYC that begin the end of the privacy coin with the reason "protecting customer and Anti Money Laundry"

https://gulfnews.com/business/banking/uae-central-bank-launches-digital-dirham-strategy-1.1679553666439
UAE Central Bank launches Digital Dirham strategy
"CBDC is a risk-free form of digital money issued and guaranteed by the central bank
Abu Dhabi: The Central Bank of UAE launched the CBUAE Central Bank Digital Currency (CBDC) Strategy, one of the nine initiatives of the CBUAE’s Financial Infrastructure Transformation (FIT) Programme, it said on Thursday. The CBUAE has engaged with G42 Cloud and R3 as the infrastructure and technology providers respectively for its CBDC implementation."

Dubai is called a crypto heaven for some people. But sooner or later they will regulate crypto  . In my opinion approach like this is still ok to me, as long as both have benefits like the government can have tax from the crypto company and the customer got protected from it. Win-win solution right? Just like my country Indonesia. It always better to regulate than banning it

UAE emirate to launch free zone for digital and virtual asset firms
Free-trade zones in the UAE are areas where entrepreneurs have 100% ownership of their businesses and have different regulatory frameworks and tax schemes.
https://cointelegraph.com/news/uae-emirate-to-launch-free-zone-for-digital-and-virtual-asset-firms

The free zone in the UAE restricts the activities of any company. That is, you cannot engage in a similar business throughout the country.To obtain an extended license, as a rule, you need to go through a more complicated procedure, if such activity is allowed. I think that companies that accept bitcoins do verification using well-known AML services.

I began to see that the use of NFTs gave a kind of public acceptance of cryptocurrencies away from what we used to hear in the past about Bitcoin being used by scammers or black markets.
Why is the use of cryptocurrencies in the UAE linked to free zones, and does this concept exist in other countries?
Does this include accepting and using Bitcoin?

Yes, there are a lot of important legislations and large projects related to Bitcoin and Crypto that have taken place in the recent period in the Middle East and North Africa region, especially in the Gulf countries, led by the United Arab Emirates, Saudi Arabia and Bahrain.

Earlier last month, Binance CEO Changpeng Zhao indicated in response to a tweet by Gemini Exchange co-founder Cameron Winklevoss that the next bull run could start from the "middle east."

                                     

https://twitter.com/cz_binance/status/1627627870620188673

it was about time! saw this coming

https://cointelegraph.com/news/uae-emirate-to-launch-free-zone-for-digital-and-virtual-asset-firms
"Ras Al Khaimah, one of the United Arab Emirate’s (UAE) seven Emirates, is set to launch a free zone for digital and virtual asset companies as the country’s approach to the industry continues to attract global crypto players.

The RAK Digital Assets Oasis (RAK DAO) will be a “purpose-built, innovation-enabling free zone for non-regulated activities in the virtual assets sector.” Applications will open in the second quarter of 2023, the statement said.

The free zone will be dedicated to digital and virtual assets service providers in emerging technologies, such as the metaverse, blockchain, utility tokens, virtual asset wallets, nonfungible tokens (NFTs), decentralized autonomous organizations (DAOs), decentralized applications (DApps) and other Web3-related businesses."

For me, this is not news and not a problem, if banks do not accept monero, I will change it to bitcoin. In Dubai, there is currently no verification of the source of funds, and many crypto users buy expensive real estate without verification. I think that this will end quickly, and property owners will be asked where they have so much money from and whether they paid taxes.

Is it a surprising news to you? If yes, then you were probably living under the rock. Slowly every nation will make rules to ban anonymous payment or privacy coins. It's just a matter of time. Anonymity is the biggest headache for the governments and this is effectively delaying the crypto adoption of many governments.

Dubai is usually known for their lenient rules and regulations. But when they are emphasizing on registering the crypto companies, they might have a plan for them. Let's just hope that the plan is favorable for the crypto market.

https://www.centralbank.ae/media/mdupathy/cbuae-launches-a-financial-infrastructure-transformation-programme-to-accelerate-the-digital-transformation-of-the-financial-services-sector-en.pdf
CBUAE launches a Financial Infrastructure TransformationProgramme to accelerate the digital transformation of the financial services sector
"In assisting the financial industry to move forward to the digital decade, the next stage
of the FIT Programme is to develop and implement a number of digital infrastructures,
including the establishment of Financial Cloud, eKYC and Open Finance Platforms.
These digital infrastructures will improve regulatory compliance, reduce cost of
operation, enhance innovation and customer experience, and most importantly,
strengthen their security and operational resilience.
With a full integration set for 2026, the FIT Programme creates an important platform
in support of the country’s “We the UAE 2031” vision and National Digital Economy "

This is not something new or surprising in a country like the UAE, which began issuing legislation suitable for crypto more than a year ago, including:
- Ruler of Dubai announces a law regulating digital currencies on March 9, 2022: Source
- The Binance platform obtained a business license on March 16 of the same year: Source
- Crypto.com and Bybit announced the establishment of a regional headquarters in Dubai on March 29, 2022: Source
-Finally, the Kraken platform obtains a license to operate in the Abu Dhabi market and enables users to use services in the local currency: Source
This is in addition to the fact that the collapsed platform, FTX, had also obtained a work permit in Dubai on March 15, 2022: Source

Many companies avoid opening business where there's no clear legislation in the area they're working.
So clear regulations can be seen as a step towards attracting more such/similar businesses in the area. Businesses that will obviously get taxed, hence of course that there's a race in providing clear regulations.


Sadly I don't expect Bitcoin go on that route too soon.
It may become feasible though when bitcoin will be used literally everywhere 

Is there any notable startup/business registered in DMCC? I tried looking into their website but I can't find any names that I recognized. Granted I'm not up to date with new crypto startups nowadays, but considering they have such a large number of registered companies, I thought I'd recognize one or two[1].

According to some news that I read, the majority of those numbers are small businesses, while larger one such as Binance is yet to register here. They probably don't need it anyway since most programs that I see are about kickstarting their business and networking support. Most of their claims of successful members also refer to local businesses.

Some reports claim the due diligence process to register as a member is quite strict, but there is no comparison to other regions/countries so that's that. From the way I see it, an established business looking to open a branch in Dubai would likely benefit more. That being said, I can see how a new business registers an office there and just hire overseas freelancers to cut cost[2]. CMIIW.

[1] https://blockworks.co/news/dubai-free-zone-now-home-to-more-than-500-crypto-startups
[2] https://www.dmcc.ae/free-zone/set-up-a-new-company

Dubai's problem is that their low taxes are offset by a very expensive standard of living.
If programmers are transported there, it will be very costly for the project. It is cheaper to work in Europe with countries loyal to cryptocurrencies. Registering a company in the Free Economic Zone is easier, but there are certain restrictions for the company. It is tedious to obtain additional permits if you want to expand the market.

Last year, Dubai and other UAE countries took important steps to rapidly adopt cryptocurrencies. For example, they launched the Dubai Metaverse strategy and issued a number of licenses to top international exchanges. In October 2022, 21 Shares launched the first Bitcoin ETP in the Middle East. It is traded on the Nasdaq Dubai international financial exchange under the ABTC ticker.

As of January 2023, more than 500 crypto startups have registered in the Dubai Free Economic Zone. This is a very good result!

In my opinion, while some countries are focused on tightening controls, Dubai's experimental approach could become a benchmark for other regions.

I'm starting to think regulating crypto firms (or looking like they are) might be something governments are seeing as a bit of a race to enable international investors to see how those regulators are adapting.

Also banning privacy coins is going to be a fun exercise if bitcoin and ethereum make more steps towards going private - I could see that legislation dying either then or by then too.

https://www.coindesk.com/policy/2023/02/07/dubai-mandates-licensing-for-crypto-companies-as-it-sets-out-regulatory-requirements/
Dubai Mandates Licensing for Crypto Companies as It Sets Out Regulatory Requirements
A new set of rulebooks from the Virtual Assets Regulatory Authority lays out requirements for crypto firms covering everything from issuance and exchange services to advertising.
"With bespoke rules and guidelines designed to provide clarity, assure certainty, and mitigate market risks, VARA seeks to develop a model framework for global economic sustainability within an innovation-centric environment that is truly borderless, technology agnostic, and future-focused," the regulator said on Tuesday.


https://www.coindesk.com/policy/2023/02/08/dubai-prohibits-privacy-coins-under-new-crypto-rules/
Dubai Prohibits Privacy Coins Like Monero Under New Crypto Rules
The issuance of anonymity-enhancing crypto are banned under the Emirate's new regulations for digital assets.