- The UAE has been pushing to the top of the Web 3.0 value chain in recent years
- Dubai has invested heavily in blockchain technology
- Dubai is a rapidly growing city that has seen an increase in Web 3.0 firms
The institutional push in recent years has moved the UAE to the top of the Web 3.0 value chain. There is broad agreement among proponents that all roads unintentionally lead to Dubai for businesses wishing to innovate on Web 3.0 and related platforms like the metaverse. Emirate’s outstanding “technology absorption” — the indicator of an entity’s capacity to take on advanced technologies and integrate them into the socioeconomic system — serves as an incentive for such businesses.
The ambitious Dubai Metaverse Strategy’s debut set an example for other constitutional organizations like DEWA to follow. The leadership of the UAE has most importantly made a sincere effort to address regulatory concerns around digital assets. An excellent example is the prompt creation of the Dubai Virtual Assets Regulatory Authority (VARA). Global corporations have increased their efforts to fully utilize Web 3.0 as proof of the effectiveness of such tactics.
What Makes Dubai A Great Centre For Web 3.0
Dubai is known for being a center for innovation and technology. The city has made significant investments in blockchain technology. And has already put in place a number of blockchain-based projects. Such as a trade finance platform and a system for digital identity verification.
In addition to its blockchain activities, Dubai has demonstrated a strong interest in other Web 3.0 technologies including non-fungible tokens (NFTs) and decentralized finance (DeFi). The Dubai Crypto Expo and the Dubai NFT Summit are just two of the notable occasions involving these technologies that the city has played host to.
Dubai’s accommodating regulatory climate is one of the reasons it has been able to pioneer Web 3.0 adoption. A regulatory “sandbox” that the city has set up enables entrepreneurs and other innovators to test out new technology in a supervised setting. Due to this, Dubai has seen an increase in Web 3.0 firms, which has contributed to the development of a robust environment for blockchain and decentralized technology.
Indian Web Projects Move To Dubai
The amount of cryptocurrency trade in India has drastically decreased a month after the new tax system went into force. The already troubled cryptocurrency market in India is under tremendous pressure. As a result of the implementation of a 30 percent capital gains tax and a 1 percent TDS on all transactions.
Numerous Indian crypto firms are now looking for friendlier locations to move their bases. In response to this regulatory haziness and the strict tax regulations. It has sparked a significant exodus of Web 3.0 and DeFi businesses to nations like Dubai, where the legal climate is more supportive of cryptocurrencies. In reality, Dubai seeks to establish itself as the Middle East’s leading cryptocurrency center.
Long anticipated cryptocurrency legislation in India.
Due to the scale of the Indian crypto sector, some investors continued to be optimistic about a favorable regime. Despite of the RBI’s reservations regarding cryptocurrencies, which it constantly expressed. However, ever since the Union Budget 2022 was revealed, most businesses and investors have shifted their focus to nations that are more open to cryptocurrency.