Dubai is planning to establish a cryptocurrency valley with special terms in the country's free zone where there is no personal or corporate income tax.
Designed to foster growth, collaboration and integrity across the global blockchain economy, the DMCC Crypto Valley will be the world's largest ecosystem for cryptographic, blockchain and distributed ledger technologies.
Dubai Multi Commodities Centre (DMCC), a Dubai government-backed entity has teamed up with Switzerland's Crypto Valley Venture Capital to implement the idea. The DMCC Crypto Valley will offer a variety of services including incubation for early-stage start-ups, co-working facilities, innovation services for corporate clients, blockchain and entrepreneurship training, education, events, mentoring and funding.
The launch of the Crypto Valley in DMCC will support the wider strategy of the UAE government to attract the innovators that will shape the future economy"
"Sat at the crossroads of the world, DMCC is a dynamic business hub that drives global trade through 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," a statement from the government said.
The agreement commits both parties to collaborate and develop a DMCC Blockchain Strategy that is aligned with the UAE Blockchain Strategy 2021.
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.
"We are thrilled to move into the MENA region with DMCC as a strong local partner," CV VC and CV Labs founder Ralf Glabischnig commented.
"We are looking forward to bringing our strong partner from crypto valley to Dubai, like Coreledger, Inacta, Lykke, and Tezos which are already active in the MENA region," he added.
Research from DMCC's Future of Trade report found that blockchain could help reduce up to 20 percent of the physical paper costs associated with global trade, currently estimated at $1.8trn.
The Philippines has already built a crypto valley of Asia.