The new free zone in Ras Al Khaimah is exploring the possibility of accepting bitcoin as payment for its services
The lawyer involved in the development of the project said that Ras Al Khaimah’s recently announced free zone, which it set aside for virtual asset companies, will explore the possibility of accepting payments from companies looking to set up their businesses in the emirate using cryptocurrencies.
Dubai-based crypto attorney Irina Heaver told Cointelegraph that once RAK DAO secures the right partners, it will investigate whether payments in cryptocurrencies, including Bitcoin (BTC), can be accepted.BTC) and stablecoins, in exchange for many different services, such as registering new companies, renting offices, and others. “After all, cities and regions in Switzerland have been doing this for years,” she noted.
Heffer further explained that the right technology and organizational infrastructure must be in place for the system to work well, and that “the foundation is already laid.” In addition, the lawyer also said that RAK DAO will explore the possibility of fully running Bitcoin and Lightning nodes to support the cryptocurrency payment initiative. She added:
“The work is well underway, and we welcome all of our technology partners to join us on this journey.”
RAK DAO, which was first unveiled during the “Blockchain Life 2023” event, is a free zone dedicated to digital and virtual asset service providers connected to the metaverse space, blockchain, utility tokens, digital wallets, non-fungible tokens, decentralized autonomous organizations (DAOs), decentralized applications, and more. Companies related to the world of Web 3.0.
The new free zone aims to promote related regulated and unregulated activities, Heffer said, and revealed that the Ras Al Khaimah DAO is exploring “creating the appropriate legal envelope for decentralized autonomous organizations”, among other things.
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Heffer explained that the new free zone will also serve “the full spectrum of companies specializing in the field of virtual assets, while other free zones can only support parts of the said industry sector, allowing for very limited activities.” She added:
“I have to structure multiple entities in multiple jurisdictions, which is time consuming and costly and counterproductive for entrepreneurs. Now, I see a great opportunity for founders to build their businesses in one place.”
It is worth noting that the UAE has more than 40 free zones, including the Dubai Multi Commodities Center (DMCC) and the Dubai International Financial Center (DIFC), and since the cost of living and setting up a business in Ras Al Khaimah is 50% lower than in Dubai Heffer stated that the new free zone would be “a great hub for startups.”
The lawyer also said that the government will also assist Virtual Asset Service Providers (VASPs) in securing banking requirements through its affiliated entities and special relationships.
