Dubai Multi Commodities Centre (DMCC), a Dubai government-backed entity has teamed up with Switzerland’s Crypto Valley Venture Capital to establish a cryptocurrency valley in the free zone of the country where there are no personal, corporate or withholding taxes, according to reports revealed on January 27, 2020.
Cryptocurrency continues to gain more grounds in the digital world. The United Arab Emirates (UAE) is set to witness a massive development and a new Dubai Bitcoin exchange is a forward-thinking manoeuvre indeed. The DMCC, with support from its partners from the Swiss crypto valley, will provide a number of services including incubation for new startups, training on the blockchain, coworking facilities, events, and education as well as mentoring and funding.
At Davos 2020, a world economic forum that is hosted annually, DMCC announced that it is setting up a crypto valley in its free zone at the centre of the city’s top business district – which is designed to accelerate growth, collaboration as well as integrity across the global blockchain economy.
It was stated:
“DMCC is a dynamic business hub that drives local trade throughout Dubai. The launch of the Crypto Valley in DMCC will enhance the city’s dynamic business environment and support the wider strategy of the UAE government to attract the innovators, entrepreneurs, and pioneers that will shape the future economy.”
The basic advantage of the DMCC is that it is located in one of the free zones in Dubai which implies that it is exempted from paying taxes. There are also no currency restrictions, allowing businesses to keep the full percentages of their income.
Hence, the blockchain and crypto enterprises that are established in the DMCC’s Crypto Valley will also enjoy the same tax-free privileges. Presently, over 17,000 companies are registered with the DMCC. According to the firm, the new Crypto Valley will have its headquarter in Jumeirah Lakes Towers, in its business district.
On the other hand, the founder of CV VC, Ralf Glabischnig also commented on the innovation. He said:
“We are happy to penetrate the MENA the Middle East and North Africa] region with DMCC a strong local partner. ”
“We are keen to bring our strong partners from the crypto valley to Dubai, like Lykke, Coreledger, Inacta, and Tezos that are already running actively in the MENA region, ” added he.
The movement has been recognized by various firms in the crypto space. Changpeng Zhao, CEO of Binance reacted to it today in a post on Twitter, tagging it as a ‘forward movement’.
Author Osaemezu Ogwu is a cryptocurrency journalist with several years of experience in the crypto-verse.