- Emirate Ras Al Khaimah will launch a free zone for companies in the digital and virtual crypto sectors
- The RAK Digital Assets Oasis platform is made for the sectors’ activities without regulation, allowing developers to create marvels without limits
- UAE’s Securities and Commodities Authority has no authority in financial free zones, making the RAK DAO a welcoming platform for crypto and Web3 firms
Ras Al Khaimah, one of the seven Emirates of the United Arab Emirates (UAE), is gearing up to release a platform called the RAK Digital Assets Oasis (RAK DAO). The free zone platform is dedicated to emerging digital and virtual asset technologies. Aimed at supporting entrepreneurs from around the world, this purpose-built oasis will enable non-regulated activities in the fields of blockchain, metaverse, NFTs, DApps, DAOs, utility tokens, and everything Web3-related.
Applications for this free zone are slated to open in the second quarter of 2023. Companies can reap the benefits of 100% ownership with their own tax schemes and regulatory frameworks — except for criminal law — that would apply here.
According to Dubai-based crypto lawyer Irina Heaver, RAK DAO will mostly offer non-financial services initially before bringing financial services on board. With this new free zone soon to become operational, UAE continues to attract attention from global crypto players.
The Securities and Commodities Authority (SCA) stands as one of the leading financial regulators in the UAE. With a new virtual assets law, this authority has jurisdiction throughout the Emirates, except for the economic free zones – Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM), and others, which have their regulatory authorities.
The launch of this new free zone makes it more than 40 multidisciplinary free zones currently in UAE that have been leveraging various blockchain, crypto, and Web3 companies. The DIFC, DMCC, and ADGM are a few of them.
Emphasizing its commitment to offer friendlier regulations to such companies, UAE has taken a new path by introducing the Virtual Asset Regulatory Authority and related laws to protect investors besides establishing standards for the digital asset industry. Furthermore, in September 2022, the Financial Services Regulatory Authority of ADGM published guiding principles on its approach to regulating and overseeing virtual assets and associated service providers.
UAE and Web3
The UAE has been actively promoting cryptocurrency and Web3 technology by introducing laws to protect investors, setting up standards for the digital asset industry, launching multidisciplinary free zones across the country, publishing guiding principles on its approach towards virtual assets, and creating Virtual Assets Regulatory Authority.
The UAE has numerous crypto, blockchain, and Web3 firms, making it an attractive jurisdiction for companies eyeing friendlier regulations. The free zones have further acted as a catalyst in developing the digital assets ecosystem, providing the necessary infrastructure, access to capital, and specialized facilities tailored to their needs. Furthermore, the country has also created programs and initiatives that enable virtual asset firms to expand their operations on a regional and global level.