The RAK Digital Property Oasis (RAK DAO) will likely be a “purpose-built, innovation-enabling free zone for non-regulated actions within the digital property sector.” Functions will open within the second quarter of 2023, the assertion mentioned.
The free zone could be devoted to digital and digital property service suppliers in rising applied sciences, such because the metaverse, blockchain, utility tokens, digital asset wallets, NFTs, DAOs, dApps and different Web3-related companies.
“We’re constructing the free zone of the longer term for corporations of the longer term,” mentioned Sheikh Mohammed bin Humaid bin Abdullah Al Qasimi, chairman of RAK ICC, the operator of the brand new free zone. “Because the world’s first free zone solely devoted to digital and digital asset corporations, we stay up for supporting the ambitions of entrepreneurs from around the globe.”
Free zones or free-trade zones are areas the place entrepreneurs have 100% possession of their companies and have their very own tax schemes and regulatory frameworks, except for the UAE’s legal legislation.
Drawing up what the brand new free zone’s steps could be, Dubai-based crypto lawyer Irina Heaver thinks “RAK DAO will begin with non-financial actions first, then could introduce the monetary actions at a later stage.” She added:
“[Entrepreneurs] will not be capable of launch a crypto trade simply but, which is an ESCA-regulated monetary exercise.”
The Securities and Commodities Authority (SCA) is likely one of the UAE’s predominant monetary regulators. In keeping with the nation’s newest federal-level digital property legislation, the SCA has authority all through the Emirates, aside from the monetary free zones — the ADGM and DIFC, which have their very own monetary regulators.
The brand new free zone provides to the greater than 40 multidisciplinary free zones within the nation which have attracted quite a few crypto, blockchain and Web3 corporations, together with the Dubai Multi Commodities Centre (DMCC), Dubai Worldwide Monetary Centre (DIFC), Abu Dhabi International Market (ADGM).
The UAE has painted itself as a forward-thinking hub for crypto corporations eyeing jurisdictions with friendlier laws. In March final 12 months, Dubai unveiled its digital property legislation, together with the Digital Asset Regulatory Authority (VARA), to guard traders and supply requirements for the digital asset trade.
In September, the Monetary Companies Regulatory Authority, the regulator of the ADGM, revealed its guiding rules on its strategy to regulating and overseeing the brand new asset class and its service suppliers.
