Real estate was the gold of the investment for years. Even today people consider real estate to be the right investment done at right age. It gets passed down to one generation to another. Now this new asset that people are getting is a digital asset that would be earning them more than the real estate.
Dubai has an institution that is called Dubai International Financial Centre (DIFC), that has started regulating the digital assets. Which goes to show that dubai is being more progressive towards the blockchain and crypto assets than even the western nations.
So what is the law that was passed down and how it would affect the consumers in the Dubai and the external investors who are invested into the digital assets there?
Let's discuss what is this new digital asset law that Dubai is pushing for.
Digital Assets Law (DAL) from DIFC
DIFC is a tax free economic zone like most of the nations have the zones meant for the IT companies same is here but with the tax free zone meant for the external and the domestic companies. Now this zone has announced the digital asset as an asset which is equally treated like the real estate. And the security and the custody aspect of the digital asset is treated similarly.
This new law is going to bring more clarity on how the digital assets are treated in regulation. It also plans about the duplication, unique value and how the use case affects in the process. It will also cover the dispute, ownership and other defense laws that applies for the real estate but in this context for a digital asset. You can get more clarity on that law here.
What are the Pro's and Con's of the new DIFC Law?
DIFC law is coming and it is trying to adapt to the upcoming blockchain changes. And that revolutionary change is going to hurt the nation but it would slowly also make it easier to adapt as the consumers also learn about the law. So the con would be the complexity in which it can be applied and enforced. As the changes in market would make the law to change things on regular basis.
In case of the benefit, I'd say that the DIFC law is going to make a lot of investment from external places and that would help the nation. In fact more regulations and the control that the crypto are adding that would make things easier for the legal framework to enforce variety of things that are coming under the digital asset.
Blockchains are not some fad internet money anymore. And they have their own use case through NFT, Smart contract and variety of other structures that are being created over the web. Now that the crypto and blockchains are being taken seriously and also real world properties are mapped to the blockchain we would be seeing some real changes.
Another interesting thing that has changed so far here is that you would find Dubai is pushing for crypto and blockchian revolution because they are reducing the reliance on the oil and the desert resources. And they are making sure that they would have the economy which is not dependent on the natural resources.
DIFC is making the digital assets a new part of the property that consumers can own and the regulations would be applied like a real world property and the laws would get regularly updated.