The cryptocurrency market has gained so much traction globally, making countries and people including investors who initially turned their back against the digital currency enlist their support for it. They have indicated by their words and actions the willingness to accept the technology wholeheartedly. The cryptocurrency market capitalization currently stands at $1.7 trillion market capitalization beating the expectations of naysayers who had maintained during the early stages of cryptocurrency that it was a 'bubble' that would soon burst.
The United Arab Emirates in the latest development indicated its willingness to recognise cryptocurrency as an investment asset. This recent policy is an epochal trajectory from the former ban on cryptocurrencies in the UAE. UAE backs its recent policy with the latest decision to issue the first OTC license for buying and selling operations with cryptocurrencies to TRES GROUP, developer of SIMBA storage. This could not have come at a better time, especially now that prices of altcoins are experiencing a massive retracement owing to no other reason than the over 50% dip in the price of the king of cryptocurrencies, Bitcoin. Perhaps this could spell a massive uptrend for the whole cryptocurrency market.
Last year, DMCC had partnered with CV VC and CV Labs at the Davos Summit to launch Crypto Valley, which is currently the largest network of cryptographic, blockchain and distributed ledger technologies in the world. The launch took place in Dubai, UAE. At the launch, DMCC expressed excitement of collaborating with CV VC and CV Labs in the UAE.
Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC asserted that:
"DMCC is delighted to sign this agreement with CV VC, and launch the Crypto Valley in Dubai, at the very heart of Dubai's leading business district. 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".
Following the set up of Crypto Valley in the UAE, Swiss company TRES Group set up an office in Dubai that would be responsible for making OTC transactions with cryptocurrency in respect of which the first OTC trade license for buying and selling operations with crypto assets was issued by DMCC. This move is geared towards developing the cryptocurrency industry in Dubai.
The OTC license for cryptocurrency trades would translate into rapid growth of the blockchain technology industry, help businesses grow and create an avenue for startups and other technological ventures, including revenue generation for the country. The license opens up barriers to opportunities and affords venture capitalists and other investors with deep pockets to take advantage of these opportunities. Market cap of the crypto market could also experience a spike following UAE's licence issuance. In fact, it confers upon OTC transactions legality, security, and gets rid of price exploitation which was also a major flaw of the industry.
Analysts at TRES envisage the far-reaching effects this move would have on the cryptocurrency market in Middle East nations, especially the ones who are recently embracing new and innovative technologies.
Antony Katin, CEO SIMBA Storage also mentioned that this move aligns with the global transition to environment-friendly products such as electric cars, solar-powered energy and the paradigm shift of most nations from the prevalent habits of consumption, import and export of non-recyclable goods.
DMCC provides a number of services such as support to SMEs, working with big firms, mutual funds, training on blockchain innovation and entrepreneurship including coaching, financing and education.