Ras Al Khaimah, one of the seven Emirates in the UAE, is set to launch a dedicated free zone for digital and virtual asset companies. The new free zone, RAK Digital Assets Oasis (RAK DAO), aims to create a hub for unregulated activities in the virtual asset sector. This move comes as the United Arab Emirates continues to attract global players in the cryptocurrency industry, positioning itself as a forward-thinking hub for cryptocurrency companies.

RAK DAO will provide a dedicated space for digital and virtual asset service providers operating in emerging technologies, such as metaverse, blockchain, utility tokens, virtual asset wallets, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), decentralized applications (DApps). ), and other Web3-related businesses. The free zone is expected to start with non-financial activities before introducing financial activities at a later stage.

Entrepreneurs looking to launch a cryptocurrency exchange may have to wait as it is a financial activity regulated by the ESCA. The Securities and Commodities Authority (SCA) is one of the main financial regulators of the UAE and has authority in all of the Emirates, except for financial free zones such as the Abu Dhabi Global Market (ADGM) and the International Finance Center of Dubai (DIFC).

The new free zone will add to the more than 40 multidisciplinary free zones in the country that have already attracted numerous cryptocurrency, blockchain and Web3 companies. These include the Dubai Multi Commodities Center (DMCC), DIFC and ADGM.

As part of the UAE’s efforts to create a friendlier regulatory environment for crypto businesses, Dubai introduced its virtual assets law in March 2022, in conjunction with the Virtual Assets Regulatory Authority. This was followed by the Financial Services Regulatory Authority’s guiding principles on the regulation and supervision of the new asset class and its service providers in September 2022.

Sheikh Mohammed bin Humaid bin Abdullah Al Qasimi, Chairman of the RAK International Corporate Center, the operator of the new free zone, expressed his enthusiasm for the project, saying: “We are building the free zone of the future for the companies of the future. Like the As the world’s first free zone dedicated exclusively to digital and virtual asset companies, we look forward to supporting the ambitions of entrepreneurs around the world.”

The establishment of RAK DAO is a strategic move for the UAE as it seeks to cement its position as a global leader in the crypto industry. By creating a crypto-friendly regulatory environment, the UAE aims to attract more industry players and foster innovation in the emerging technologies sector.