Ever since the cryptocurrency market became a global sensation in the finance world, Dubai has stood out to be one of the most successful destinations for crypto and blockchain businesses to flourish. And to continue to do so, the leaders of the place are making sure that Dubai stands out as one of the leading places for virtual currencies.
Sheikh Mohammed bin Rashid Al Maktoum declared on the third anniversary of the Dubai Virtual Assets Regulatory Authority (VARA) that the total value of VA transactions to date had surpassed AED 2.5 trillion ($680 billion).
Here’s what this means for Dubai
The new strategy, which was approved by Sheikh Maktoum bin Mohammed, the Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, lays out plans to increase the size of assets managed by financial services companies in Dubai over the next ten years and double the sector’s contribution to the emirate’s GDP.
“A completely new economic sector has been added to our national economy,” he said. “Today, Dubai leads as the world’s largest licensed virtual assets market, with trading volumes exceeding 2.5 trillion AED since the start of the year.”
Also Read: Dubai Launches Middle East’s First Tokenized Real Estate Investment On XRP Ledger
Dubai has come a long way
Dubai established VARA to regulate the market three years ago and enacted the first law in the world governing virtual assets. Currently, the authority oversees more than 600 registered advisory or tech service providers and more than 40 licensed virtual asset service providers (VASPs).
Due to VARA’s structure, Dubai is now a transparent and safe place for investments, drawing in both domestic and foreign firms.
Regulation isn’t the only thing Dubai is doing. The Dubai Financial Sector Strategy, which outlines 15 revolutionary projects over the next three years, was adopted on October 12. Fintech, virtual assets, SME finance, asset and wealth management, and capital markets are the main topics of these programs.
The strategy seeks to recruit new asset managers, promote family firms and startups to list publicly, and increase the financial sector’s GDP contribution to Dubai. Additionally, it emphasises SME finance, opening up funding sources and strengthening their economic contribution.
Virtual Assets boom in Dubai
Like we already stated, Dubai has one of the most crypto-friendly regulations in the world. With approximately Dh2.5 trillion ($681 billion) in transaction volumes among organisations regulated by the VARA so far this year, Dubai, the commercial, tourist, and financial centre of the Middle East, is now home to the biggest licensed virtual assets market in the world.
Dubai is moving up the world financial scale. It has the most potential for future development among all hubs, ranking 11th in the Global Financial Centres Index.
While the Financial Sector Strategy propels innovation in capital markets, fintech, and SME finance, VARA is watering the ecosystem of virtual assets.
Also Read: Nomura’s Laser Digital Wins Dubai VARA License To Offer Regulated Crypto OTC Derivatives