DMCC: about activities regulation related to crypto assets, blockchain and the current status of the Crypto Valley project.
Since there is a lot of questions are coming, while the released official information touches the subject just in very general, we requested a clarification directly from the DMCC administration. Below we provide the full response of the DMCC representative to our request.
“We are in the process of developing a Crypto Valley of our own. An ecosystem that will provide support, products, and services to all sorts of entrepreneurs, startups, scaleups, and larger corps throughout the Cryptographic landscape, including distributed ledger, blockchain, tokenization, crypto-assets, etc. We are also looking to develop Crypto Asset regulations with local Federal Authority and will be looking at what license activities we can offer to support part of the ecosystem that will welcome these developments.
As Cryptocurrencies such as Bitcoin are not seen as a currency by Central Bank of UAE they are not covered under any specific regulation. The Crypto Asset regulation we are looking at will include Commodities/Securities backed tokens but will not include existing ‘Crypto Currencies’, at least for now. The regulations are likely to cover, Crypto Asset Exchange Security Token, Crypto Fundraising Platforms, Crypto Custody Services/Crypto Asset Custodian, and Specific Use Credit Commodity Tokens.
So as you can see the horizon will look very different and we are committed to making Crypto Valley Dubai a success which means not only local connectivity but global, and that’s why we have connected with our partners for this who have a very strong track record of success in Switzerland.
We already have a Blockchain License and a Prop Trading Crypto License activity which was partly developed to be more acceptable and to ease the opening of Bank accounts for our members. This is more for BC software development.
Distributed Ledger Technology Services: Includes providing database management solutions and ancillary services based on distributed ledger technologies, such as Blockchain. Companies with these activities are not permitted to trade in, or set-up an exchange for, currencies or cryptocurrencies/commodities or provide any financial activity services, brokerage or payment processing.
Proprietary Trading in Crypto-commodities: Includes the buying and selling (Proprietary Trading) of crypto-commodities developed on distributed ledger technology applications. This activity does not include acting as an exchange, providing brokerage services, financial services, banking services, payment processing or storage services.
We welcome all interest and happy to discuss further at any time. This is just the start and we need plenty of involvement to make it a success.”