Why is UAE committed to building a Web3.0 community?
Introduction
The United Arab Emirates (UAE) is recognized as being in the vanguard of innovation. It provides everyone with a solid foundation to investigate prospects in the rapidly developing Web3.0 community. The United Arab Emirates (UAE) has been very active in pushing for reforms and policies that are favourable to this rapidly expanding community, and the proof of this is the two-day event known as Metacon that is currently being hosted at The Arena, Dubai World Trade Centre, and will come to a close today. In the year 2021, the size of the worldwide metaverse market was estimated to be $63.83 billion. According to Fortune Business Insights, the market is expected to increase from $100.27 billion in 2022 to $1.52 trillion in 2029, at a CAGR of 47.6% in the forecast period, 2022-2029. This represents a growth from $100.27 billion in 2022.
What are Dubai's plans?
The United Arab Emirates (UAE) is considering establishing a Dubai Virtual Assets Regulatory Authority (VARA), which would be tasked with regulating digital assets in compliance with the new law. This would conform with the provisions of the new legislation. In addition, the VARA is intended to function as an independent entity subordinate to the Dubai World Trade Centre Authority. This authority will monitor the regulation, governance, and licensing of various type of payments, including Crypto payments and Blockchain payments.
Gala has solidified its position as the uncontested global leader in Web3 entertainment in the field of blockchain technology, which is experiencing rapid expansion at the moment. By combining a professional grade AAA gaming experience with a robust ecosystem based on genuine player ownership and incentives, Gala Games is working to create the most rewarding entertainment economy in the history of the world. This will be accomplished by creating the most rewarding entertainment economy in the history of the world.
The primary responsibilities of the Virtual Asset Registration Authority (VARA) include the regulation of the issuance of new crypto tokens, the supervision and control of the trading of virtual assets, the guaranteeing that high standards of protection are in place, the monitoring of transactions, and more. Other responsibilities include: In addition to being in charge of the exchange of virtual assets, the VARA is also accountable for the supply of management services and exchange services, as well as the administration of platforms for virtual assets and the storage of virtual assets. The United Arab Emirates has made significant progress over the last several years in advancing its commitment to establishing an environment that can encourage long-term economic development via digital innovation. A memorandum of understanding (MoU) was signed between the Securities and Commodities Authority (SCA) and the Dubai World Trade Centre Authority (DWTCA) in September 2021. The purpose of the MoU was to support the regulation, offering, issuance, listing, and proper functioning of Crypto payments and related financial activities within the free zone administered by the Dubai World Trade Centre Authority. This was done to make the expansion of the Crypto payments go more smoothly. The Dubai World Trade Center Authority (DWTCA) and the Binance exchange have announced their plans to establish a new global commercial centre for virtual assets in Dubai. These plans were made public in two separate announcements. The Dubai Financial Services Authority also issued the Consultation Paper on the Regulation of Blockchain payments.
Impact In the Crypto World
The United Arab Emirates (UAE) is preparing to give government licences to companies that offer services related to virtual assets. It hopes to entice crypto titans from all over the globe. For instance, in late December 2021, Binance and the Dubai World Trade Centre Authority (DWTCA), which is developing a worldwide ecosystem for virtual assets, agreed. As a direct consequence of the transaction, Binance has become one of the first Blockchain payments platforms to become a part of the DWTCA's new crypto centre.
By bit, a cryptocurrency exchange located in Singapore said in March that it would be moving its headquarters to Dubai and starting operations in April. On the same day, Crypto.com publicly announced that they would be building a regional hub office. The two announcements take place at the same time that new regulations are being enacted in Dubai to establish the emirate as a worldwide hub for crypto-assets and associated businesses such as the Metaverse. Bybit has issued a statement indicating that the firm has been granted an in-principle license to carry out a "full-spectrum" of virtual asset companies in Dubai. This information comes from the company's announcement.
Ben Zhou, co-founder and CEO of Bybit expressed excitement about the company's plans to establish its worldwide headquarters in Dubai. "Bybit looks forward to contributing to the virtual assets innovations of the emirate's booming economy," Zhou said. "This permission in principle represents an incredible potential for Bybit to help the goals of the United Arab Emirates and the broader region to become a global technological powerhouse for virtual assets."
Dubai has been gaining ground with the crypto community.
Many people who participate in the web3 community already have a positive impression of the country. The Dubai Media Office announced in December of the previous year that the Dubai World Trade Centre would officially become a Blockchain payments zone. This change would make it possible for businesses operating in the Crypto payments and virtual asset industries to conduct their operations from the Dubai World Trade Centre. The city's media office stated at the time announcing that it would establish "rigorous measures" to protect investors and prevent money laundering.
The four zones that make up Metacon—Metastage, Metaconnect, MetaArena, and Metaspace—will be redesigned as four separate places dedicated to educational and entertaining activities. These zones will be called Metacon. Although MetaStage will be conducting lectures and thought-provoking panel discussions, the focus of these events will be on the most relevant concerns that are trending in the Metaverse. In addition, the MetaVator Challenge is a one-of-a-kind pitch competition and a first-of-its-kind platform for entrepreneurs working in the Metaverse, NFT, Gaming, and Web3 sectors, will take place at MetaStage. This event is unlike any other of its type. The presentations will take place on the second day of the event, which is being organized by One&Only in collaboration with the Dubai Youth Council. These presentations will contain a cash prize of Dh75,000, non-fungible tokens (NFTs), mentorship support, contact information for investors, and more.
In 2021, funds from a cryptocurrency-based relief fund in India were sent to Dubai through companies there. This was done because the regulation surrounding such conversions is more lenient in the United Arab Emirates (UAE).
VARA's Tasks
The following is stated on the Government Portal of the UAE:
It is responsible for ensuring the highest standards of protection for the personal data of beneficiaries, coordinating the issuance of virtual assets and tokens and the trading of those assets, organizing and authorizing virtual asset service providers, coordinating the operation of virtual asset platforms and portfolios, monitoring transactions and preventing price manipulation of virtual assets, and coordinating the monitoring and prevention of price manipulation of virtual assets.
The following are examples of activities that need authorization from VARA:
- providing exchange services between virtual assets and currencies, whether national or international, administering and managing platforms for virtual assets, and providing exchange services between one or more types of virtual assets
- virtual assets' transfer services
- services related to virtual assets' custody and management services related to virtual assets' portfolio services related to the offering and trading of virtual tokens services related to virtual assets'
Conclusion
This two-day event, called Metacon, which is being hosted in The Arena, Dubai World Trade Center, and will conclude today, is proof that the United Arab Emirates is aggressively pursuing changes and policies favourable to this quickly growing group.