The top watchdog of one of the states in the United Arab Emirates has granted approval to a Canadian investment company to start a Bitcoin fund in the country. The Dubai Financial Services Authority (DFSA) granted approval to QBTCu.TO to start the new fund according to a report from Trade Arabia. The move is among the first such allowances made to the sector and will likely see further capital flight to the investment hub.
The United Arab Emirates has long been one of the top destinations for conventional investments from around the world. All major companies operate their offices there and financial services sector has a big presence there including many regional headquarters as well. The country has long sought to ease investments into the crypto sector as well, looking to benefit from the boom that is happening here. However, things have been slow overall apart from a few superficial approvals. This was mainly because the financial regulators were clueless on how to adopt a balanced role that will allow the sector to progress without it overwhelming the entire financial system of the country. There was also a concern that the new currency systems will invite money laundering and other shady activities in the country.
However now, the country has learned about the Bitcoin industry to be more confident going forwards. The DFSA has given one of the first such approvals to the Canadian investment company. The new fund will now be allowed to take up to $200 million investments in the country in the crypto sector. The primary purpose being put forward by the company right now is to facilitate direct and indirect investment and exposure into the world of digital currencies starting with Bitcoin itself. The main investors are expected to be big institutional capital handlers. For effective regulatory process, the DFSA has also announced new sets of rules for the crypto world too.
Nasdaq is the official markets operator in the Middle Eastern country. The enabler has had successful experience with crypto-based companies and investments before and is now offering a unique financial instrument in Dubai. This may drum up further interest in the country about digital assets and their importance. It is going to be important for the industry overall as it means another big financial hub is now readying to bet on the new asset class.
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