UAE Free Zone to Explore Bitcoin Payments for Services, Lawyer Says

Ras Al Khaimah’s recently announced free zone for virtual asset firms will explore accepting crypto payments from companies looking to set up their businesses in the emirate, a lawyer involved in developing the hub said.

Dubai-based crypto lawyer Irina Heaver told Cointelegraph that once Ras Al Khaimah Digital Assets Oasis (RAK DAO) secures the right partners, it will check out crypto payments, including Bitcoin (BTC) and stablecoins, for business registrations, office rentals and other services. “After all, cities and cantons in Switzerland have been doing this for years,” she noted.

Heaver further explained that the appropriate technology and regulatory infrastructure must be in place for the system to work, but clarified that “the groundwork has been laid.” In addition, the lawyer also said that RAK DAO would explore operating full Bitcoin and lightning nodes to support the crypto payment initiative. She added:

“There is work in progress in this regard and we welcome technology partners to join us on this journey.”

RAK DAO – first unveiled during Blockchain Life 2023 – will be a dedicated free zone for digital and virtual asset service providers involved in metaverse, blockchain, utility tokens, digital wallets, non-fungible tokens, decentralized autonomous organizations (DAOs), decentralized applications and other Web3-related businesses.

Heaver said the new free zone aims to promote regulated and non-regulated activities, revealing that RAK DAO is exploring, among other things, “creating the right legal wrapper for DAOs”.

Related: The United Arab Emirates is launching a free zone for firms with digital and virtual assets

The new free zone will also serve “the entire chain of companies in the virtual assets space,” Heaver explained. “While other free zones can only support segments of the industry, allowing very limited activities.” She added:

“I have to structure several entities in several jurisdictions. This increases costs and time and is counterproductive for entrepreneurs. Now I see a great opportunity for founders to base their businesses in one place.”

The UAE has over 40 free zones, including the Dubai Multi Commodities Center (DMCC) and the Dubai International Financial Center (DIFC).

With the cost of living and doing business in Ras Al Khaimah being 50% lower than in Dubai, Heaver said the emirate’s free zone would be a “great point for start-ups”.

The government will also assist virtual asset service providers (VASPs) with bank claims through its own entities and relationships, the lawyer said.