Ras Al Khaimah, one of the seven Emirates of the UAE, is launching a free zone only for digital and virtual asset firms. The RAK Digital Assets Oasis (RAK DAO) will open applications in Q2 2023 and is aimed at non-regulated activities in the virtual assets sector. The free zone is focused on emerging technologies. Some of them are the metaverse, blockchain, and decentralized applications (DApps). Of course, this will also welcome NFTs, DAOs, and crypto wallets. The free zone aims to provide a hub for innovators and investors alike.
“We want it to be purpose-built, innovation-enabling free zone for companies of the future,”
Sheikh Mohammed bin Humaid bin Abdullah Al Qasimi, chairman of the RAK International Corporate Centre.
Entrepreneurs within the DAO will have 100% ownership of their businesses. and will have their regulatory frameworks and tax schemes except for the UAE’s criminal law. RAK DAO plans to start with non-financial activities. According to Irina Heaver, a crypto lawyer, the DAO will introduce financial activities later on. This revelation does not cover crypto exchanges. This is because exchanging crypto is an ESCA-regulated financial activity.
The RAK DAO will add to the 40 free zones in the UAE. These free zones have attracted many blockchain, crypto, and Web3 firms. Some of the biggest Dubai firms in the industry are Dubai Multi Commodities Centre, Abu Dhabi Global Market (ADGM), and Dubai International Financial Centre (DIFC). The country has become a hub for crypto firms seeking jurisdictions with friendlier regulations.
The UAE has demonstrated a forward-thinking approach to the industry. Through the years, they are providing standards for the digital asset industry. Moreover, they are ensuring investor protection through the Virtual Asset Regulatory Authority. The ADGM has also published guiding principles on its approach to regulating and overseeing the new asset class and its service providers.
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The RAK Digital Assets Oasis is likely to become a hub for digital and virtual asset firms in the UAE. It offers entrepreneurs a dedicated platform to showcase their innovations. The free zone’s regulations, tax frameworks, and approach make the UAE perfect for crypto and blockchain firms. This DAO is for sure a positive development for the UAE. The Emirates continues to prove its commitment to emerging technologies and entrepreneurship.