Last year, a dedicated hub for local crypto entrepreneurs in Dubai attracted twice as many digital asset startups as in 2021.
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The booming digital asset ecosystem in Dubai, a wealthy Middle Eastern city, has reportedly attracted more than 500 crypto companies so far.
The Dubai Multi Commodities Centre (DMCC) reported that it registered over 3,000 new businesses last year, a 23% rise from 2021.
According to the group, 343 of those were digital asset startups joining DMCC's "Crypto Center," indicating that around 150 crypto-related startups were added in 2021.
The DMCC is the city's flagship free zone, offering tax breaks and other advantages to startups. In 2021, it established a crypto hub in a 68-story tower in Dubai's Jumeirah Lake Towers area.
The center is intended to function as a coworking and networking area for entrepreneurs in the crypto and blockchain industries.
Cryptocurrency technically comes under the authority of the Virtual Assets Regulatory Authority (VARA); however, the Securities and Commodities Authority (SCA), a federal agency of the UAE, also has some control over the digital asset sector.
"DMCC has been efficiently accelerating its growth strategy throughout 2022, focusing on supporting its member companies in high-impact sectors such as Web3 and blockchain technologies, commodities, and global trade," stated DMCC CEO Ahmed Bin Sulayem.
Several crypto firms started establishing operations in the UAE last year to capitalize on the region's goals to emerge as a crypto hub.
According to the DMCC's member directory, significant crypto companies with provisional licenses like Binance and Crypto.com haven't yet decided to join in. However, the DMCC's member list featured several startups focused on the metaverse.
Despite the promotion and alleged ease of setting up a business there, some people have found their entrepreneurial journeys to be challenging because due diligence procedures can be taxing.
According to reports, the center joined forces with the venture capital firm Brinc in October last year. Brinc stated that through its $150 million accelerator vehicle, it would potentially provide funding sources to DMCC crypto startups.
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