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'There is no business before tax'... ‘Dubai wind’ blowing in the global virtual asset industry

The Dubai Multi Commodities Center (DMCC) in the United Arab Emirates (UAE), dubbed the holy land of crypto, is rapidly growing in size. Virtual asset companies from around the world are flocking to DMCC amid various tax benefits and active investment support.

According to the DMCC on the 29th, the number of newly registered companies last year was 3049, an increase of about 23% compared to 2485 in 2021. There are as many as 22,000 companies located within the DMCC commercial district. Among them, 343 companies have newly established themselves in the DMCC Crypto Center, where virtual asset-related companies are gathered. Compared to 150 in 2021, it has more than doubled. DMCC is the largest free trade zone in the UAE, located in the Jumeirah Lake Towers district of New Dubai. A wide range of commodities are traded, from precious metals such as gold and diamonds to agricultural commodities such as energy, steel, and coffee and tea. As of January, the Crypto Center, which has more than 500 member companies, is an industrial ecosystem where virtual asset and blockchain companies gather.

Among these companies, major global virtual asset exchanges such as Binance,, and Bybit are also included. opened a base office in Dubai in the spring of last year, and Bybit moved its headquarters from Singapore to Dubai after receiving a virtual asset business license in March of last year. The location of Binance's headquarters is unclear, but Binance CEO Changpeng Zhao has stated that "Dubai and Paris are (Binance's) global hubs."

This year, big crypto companies are expected to continue their trip to Dubai. Deribit, one of the largest crypto derivatives exchanges in the world, is planning an expansion to Dubai. David Domaine Deribit CRO (Chief Compliance Officer) told Bloomberg on the 25th (local time), “Dubai is more active and flexible in regulation than other places for virtual asset companies, and virtual assets are welcomed as a product.” In Korea, WeMade recently announced the establishment of a UAE corporation to advance into the Mena (Middle East and Africa) region.

The UAE is actively supporting virtual asset and blockchain companies with the goal of attracting more than 1,000 blockchain and metaverse companies and creating 40,000 jobs by 2030. The Crypto Center has partnered with Brinc, a global VC company, and provides members with the opportunity to receive investment from a fund worth 150 million dollars (approximately 184.6 billion won). Although some regulations were strengthened in the process of issuing licenses after the FTX crisis, the UAE does not have an obligation to disclose corporate information. In addition, the government-level blockchain-friendly trend continues, such as forming partnerships with companies to issue tokens based on gold bars traded at the DMCC.

An official from the virtual asset industry said, “These days, people with a lot of money say they are going to Dubai, but as much money is collected, interest in Dubai is high for many projects.” do,” he said.

In fact, the KOTRA Dubai Trade Center has recently shown high interest in virtual assets and IT, etc. Amid an increase in the number of government investment officials and businessmen visiting Korea and seeking investment destinations, fraudulent crimes with trade, investment, and loans as bait are rampant, especially in Dubai. He warned me that he was being harassed. [etoday]


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