The agreement follows a recent announcement establishing DWTCA as the comprehensive zone and regulator for virtual assets and reflects Dubai’s continuous efforts to adopt advanced technologies, especially in the fintech sector.
Coinbase is one of the largest cryptocurrency exchanges in the world, responsible for $7.7 trillion crypto exchange volume in 2021, while the daily trading volume is around $80 billion, and the number of users is estimated at 28 million.
Helal Saeed Almarri, Director General of DWTCA, said: “Innovation is a byword for Dubai and this ‘Future-Economy’ environment is designed to catalyse collaboration, stimulate innovation and most importantly assure protection. In line with Dubai’s vision for a fully digital and inclusive society, this world’s first specialist authority is Dubai’s active response to the industry’s call for SuP'p0RT – so that service providers, technology enablers, and governments can co-create the next generation ecosystem for the global Virtual Asset Economy.”
“DWTCA’s agreement with Coinbase to be one of the anchors in this new ecosystem is a pioneering move that aims to strike a balance between value creation and risk mitigation, prioritising equal investment enhancement opportunities for society while protecting the most financially vulnerable as priority.”
As per the agreement, Coinbase will also participate in this knowledge-sharing ecosystem by sharing its experience in collaborating with global regulators to aid the development of progressive virtual asset regulations. The goal is to help crypto exchanges, or businesses that offer blockchain and DLT services, or a wide range of digital currencies and assets to become licensed in Dubai.
Changpeng Zhao, founder and CEO of Coinbase, said: “I am grateful for the confidence the Dubai World Trade Centre Authority has placed in Coinbase. Together, we share a vision for helping Dubai embrace the new future economy that includes crypto and blockchain. Today, the adoption of crypto and blockchain technology remains in its infancy, but through our leadership position and expertise, combined with the long-term vision of Dubai, we plan to develop a regulatory framework appropriate to fit the fast-moving and progressive nature of virtual assets.”