The United Arab Emirates is famous for its free trade areas, in which member countries agree on tariffs, moving towards forming a single market.
Ras Al Khaimah, one of the seven United Arab Emirates (UAE), is about to launch a free trade zone called RAK DAO or RAK Digital Assets Oasis, for digital companies.
Launching in Q2 2023, RAK Digital Assets Oasis is a purpose-built, innovation-enabling free zone and the first in the world dedicated to digital and virtual asset companies. https://t.co/GsDJv8j1pO#RAKDAO #DigitalAssets #VirtualAssets pic.twitter.com/0y9U9UsSrs
— RAK Digital Assets Oasis (@RAK_DAO) February 28, 2023
The move comes as the country is looking to reach major global crypto players. According to the announcement, the free trade zone will come into operation from the second quarter of 2023.
In the trend of globalization, many countries often connect to form a free trade area. RAK DAO was also born with the aim of forming a playground that converges virtual and digital asset service providers, metaverse projects, blockchain, wallets, NFTs, decentralized autonomous organizations (DAOs), decentralized applications (dApps) and other Web3 businesses.
Free Zone or Free Trade Zone is an economic area where businesses and entrepreneurs have absolute ownership of their organization. This means that they have full authority to set up their own tariff system and legal framework, with the exception of the UAE’s criminal law.
Sheikh Mohammed bin Humaid bin Abdullah Al Qasimi, who runs the RAK DAO, said:
“We are building a free trade zone for future companies. As well as being the world’s first playground exclusively for virtual and digital asset companies, we look forward to supporting entrepreneurs from around the world.”
As revealed by a lawyer in Dubai, RAK DAO will start as a non-financial first as well as cannot launch a cryptocurrency exchange yet, as the operation is under the jurisdiction of the ESCA.
The Securities and Commodities Commission (SCA) is one of the UAE’s leading financial regulators. According to the law most recently, the SCA has jurisdiction over the UAE, excluding the financial freedom zones – Abu Dhabi Global Market (ADGM), Dubai International Financial Center (DIFC) and other regions with regulatory authorities. own financial management.
Overall, the West Asian country is slowly establishing itself as a forward-thinking place for the cryptocurrency industry through increasingly friendlier regulations. The UAE established the Dubai Virtual Assets Authority (VARA) in March to build a regulatory framework for cryptocurrencies in Dubai. Since then, a series of companies in the field of blockchain and metavserve have “migrated” here.
To date, VARA has renewed or renewed licenses for several leading platforms such as Binance, Crypto.com, Huobi, and OKX. Another significant effort by the government of this country is the risky plan to set up a simulator headquarters in the world of The Sandbox.
Back in May 2022, the UAE minister once called for the purge of the “criminal” metaverse and proposed a plan to strictly control money laundering with crypto, in order to clear the way for the UAE to become a true “Crypto Hub”. .
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