Introduction to RAK Digital Assets Oasis (RAK DAO)
The RAK Digital Assets Oasis (RAK DAO) is an emerging free zone in Ras Al Khaimah, one of the seven Emirates in the UAE, specifically designed to foster the growth of digital and virtual asset companies. Announced at Blockchain Life 2023, RAK DAO aims to create a supportive environment for crypto firms and related businesses, making it the first of its kind globally.
｜Why RAK DAO is Regulatory-Friendly｜
▶ Comprehensive Regulatory Framework
RAK DAO operates under the jurisdiction of Ras Al Khaimah, which offers a business-friendly regulatory environment. The free zone provides clear guidelines and regulations that ensure market stability and investor protection. The UAE, particularly Ras Al Khaimah, has established itself as a forward-thinking hub for crypto firms by implementing robust regulatory measures. These include the “Regulation of Stored Values and Electronic Payment Systems,” which provides a framework for licensing and regulating crypto exchanges, custodians, and other service providers.
▶ Incentives and Benefits
RAK DAO offers numerous incentives to attract global crypto players, including:
– 100% Foreign Ownership: Entrepreneurs have complete ownership of their businesses without the need for a local partner.
– No Corporate or Personal Income Tax: Companies and individuals operating within the free zone are exempt from corporate and personal income taxes.
– No Customs Duties: Goods imported and exported through the free zone are exempt from customs duties.
– Simplified Licensing and Registration: The process of setting up a business is streamlined, with simplified procedures for licensing and registration.
｜Supporting Crypto Companies｜
▶ Innovation-Driven Environment
RAK DAO is designed as an innovation-enabling free zone, focusing on non-regulated activities in the virtual assets sector. This approach allows crypto companies to operate in a supportive ecosystem, fostering innovation and growth without the burden of excessive regulatory constraints. This environment is crucial for the development and adoption of new technologies in the crypto space.
▶ Government Support
The UAE government has shown significant support for the crypto industry, positioning the country as a global leader in blockchain technology and digital assets. Initiatives such as the Dubai Blockchain Strategy 2020 aim to make Dubai a blockchain-powered city, reflecting the broader national strategy to integrate and promote blockchain technology across various sectors.
｜Launching a Crypto Company in RAK DAO｜
▶ Step-by-Step Process
1. Initial Consultation: Engage with RAK DAO representatives or authorized business setup consultants to discuss your business requirements and the setup process.
2. Business Registration: Submit necessary documents and register your business with RAK DAO. The registration process is designed to be quick and efficient.
3. License Application: Apply for the relevant licenses based on your business activities. RAK DAO offers licenses for various crypto-related activities, including advisory services, brokerage, custody services, exchanges, lending, and payment services.
4. Operational Setup: Once licensed, set up your operational infrastructure within the free zone, leveraging the benefits and incentives offered by RAK DAO.
5. Compliance and Reporting: Ensure ongoing compliance with RAK DAO’s regulations and reporting requirements to maintain good standing and benefit from the free zone’s supportive environment.
RAK Digital Assets Oasis is poised to become a pivotal hub for the crypto industry, offering a regulatory-friendly environment that supports innovation and growth. By providing a comprehensive regulatory framework, attractive incentives, and a streamlined setup process, RAK DAO is well-equipped to attract and nurture digital and virtual asset companies. This initiative not only underscores Ras Al Khaimah’s commitment to becoming a leader in the digital economy but also enhances the UAE’s position as a global crypto and blockchain hub.
｜Why RAK DAO is Regulatory-Friendly｜
▶ Comprehensive Regulatory Framework
RAK DAO operates under the jurisdiction of Ras Al Khaimah, which offers a business-friendly regulatory environment. The free zone provides clear guidelines and regulations that ensure market stability and investor protection. The UAE, particularly Ras Al Khaimah, has established itself as a forward-thinking hub for crypto firms by implementing robust regulatory measures. These include the “Regulation of Stored Values and Electronic Payment Systems,” which provides a framework for licensing and regulating crypto exchanges, custodians, and other service providers.
▶ Incentives and Benefits
RAK DAO offers numerous incentives to attract global crypto players, including:
– 100% Foreign Ownership: Entrepreneurs have complete ownership of their businesses without the need for a local partner.
– No Corporate or Personal Income Tax: Companies and individuals operating within the free zone are exempt from corporate and personal income taxes.
– No Customs Duties: Goods imported and exported through the free zone are exempt from customs duties.
– Simplified Licensing and Registration: The process of setting up a business is streamlined, with simplified procedures for licensing and registration.
｜Supporting Crypto Companies｜
▶ Innovation-Driven Environment
RAK DAO is designed as an innovation-enabling free zone, focusing on non-regulated activities in the virtual assets sector. This approach allows crypto companies to operate in a supportive ecosystem, fostering innovation and growth without the burden of excessive regulatory constraints. This environment is crucial for the development and adoption of new technologies in the crypto space.
▶ Government Support
The UAE government has shown significant support for the crypto industry, positioning the country as a global leader in blockchain technology and digital assets. Initiatives such as the Dubai Blockchain Strategy 2020 aim to make Dubai a blockchain-powered city, reflecting the broader national strategy to integrate and promote blockchain technology across various sectors.
｜Launching a Crypto Company in RAK DAO｜
▶ Step-by-Step Process
1. Initial Consultation: Engage with RAK DAO representatives or authorized business setup consultants to discuss your business requirements and the setup process.
2. Business Registration: Submit necessary documents and register your business with RAK DAO. The registration process is designed to be quick and efficient.
3. License Application: Apply for the relevant licenses based on your business activities. RAK DAO offers licenses for various crypto-related activities, including advisory services, brokerage, custody services, exchanges, lending, and payment services.
4. Operational Setup: Once licensed, set up your operational infrastructure within the free zone, leveraging the benefits and incentives offered by RAK DAO.
5. Compliance and Reporting: Ensure ongoing compliance with RAK DAO’s regulations and reporting requirements to maintain good standing and benefit from the free zone’s supportive environment.
RAK Digital Assets Oasis is poised to become a pivotal hub for the crypto industry, offering a regulatory-friendly environment that supports innovation and growth. By providing a comprehensive regulatory framework, attractive incentives, and a streamlined setup process, RAK DAO is well-equipped to attract and nurture digital and virtual asset companies. This initiative not only underscores Ras Al Khaimah’s commitment to becoming a leader in the digital economy but also enhances the UAE’s position as a global crypto and blockchain hub.
