Dubai-based economic free zone DIFC gets rules to govern Web3 firms: all details here

Dubai, the emerging global hotspot for web 3 activities and business, has taken another major step to make things more profitable for those interested. A layer of regulations dedicated to the supervision of the Web3 sector has been placed at the Dubai International Financial Center (DIFC). This Special Economic Free Zone, located in Dubai, was established in 2004. The free zone operates under the Dubai Financial Services Authority – an independent regulator for the DIFC. With the arrival of Web 3 Firms in Dubai, the regulator felt an urgent need to bring in some new rules.

Called the Digital Assets Act, the law adds some new Web3-centric rules while also making changes to existing laws about contracts, liabilities, protection, damages, remedies and grounds.

“The DIFC is excited to announce the implementation of our Digital Assets Act. We comprehensively set out the legal characteristics of digital assets as a matter of property law and how digital assets are controlled by interested parties. , cite this legislation as the first piece of legislation that can be transferred and dealt with. said Commenting on the development, DIFC Authority Chief Legal Officer Jack Weiser.

In recent times, DIFC has been gearing up to see a surge in Web3 firms entering the Economic Free Zone. In August last year, the DIFC decided to subsidize 90 percent of the licensing cost for Web3 and A.I Company.

Therefore, the newly enacted rules enacted by the DIFC outline these practices. Digital assets Like Cryptocurrency And NFTs Industry participants operating outside the DIFC Free Zone will be monitored, transferred, and dealt with.

According to Visser, this is the first legislature in the UAE to comprehensively set out the legal characteristics of digital assets under the provisions of the Property Law.

“The purpose of the legislative acts is to ensure that the DIFC rules keep pace with the rapid developments in international trade and financial markets arising from technological advances, and investors and users of digital assets. provide legal certainty for,” DIFC officials noted in the official An announcement post that further details the revised rules.

Dubai is often referred to as the home of Web3 and many emerging technologies. Back in 2022, the crypto sector in Dubai fell under A set of new regulatory frameworks. At the time, the UAE also established the Virtual Asset Regulatory Authority (VARA) — an independent body to oversee the governance of the crypto space. However, this law did not apply to the DIFC as the free zone has its own governing body.