An executive from the Ras Al Khaimah Digital Assets Oasis (RAK DAO) in the United Arab Emirates told Cointelegraph on Oct. 14 how the free economic zone aims to foster innovation in the digital assets space and how regulation by enforcement can drive talent away.
At the Future Blockchain Summit in Dubai, held Oct. 13-16, RAK DAO chief commercial officer Luc Froehlich spoke about their approach to regulation and how the crypto-focused free zone tries to find ways to help businesses grow. He explained:
“The objective is not just to sell licenses and say, ‘Okay, take my license and good luck.’ It’s actually to partner with them to help them grow and identify the partners around them that can help them develop their business.”
Froehlich said the zone is working toward a “point of convergence” for different players in the crypto space.
“The realization has increasingly been that you need to have a point of convergence. We need to have people coming to one place to generate and execute new ideas,” he added.
RAK DAO’s Luc Froehlich (right) with Cointelegraph reporter Ezra Reguerra at the Future Blockchain Summit in Dubai. Source: Luna PR
Attracting talent to develop the local crypto space
Froehlich, who also worked in Hong Kong, said that while there are talented people in mainland China, there are limitations when working in blockchain and crypto. He added that Europe can also present a “challenging environment” for crypto projects.
He highlighted that there has been an exodus of talent from the United States because regulators have been unable to provide clarity to key players and have instead facilitated a regulation-by-enforcement approach. Froehlich explained:
“I do believe that there is a need for clarity when it comes to the regulation. It cannot be regulation by enforcement. We’ve seen how it works out in the US, and it was just an exodus of talent. Very sad for the industry because it just puts us down, literally a few years down.”
So while there are issues in many jurisdictions around the globe, Froehlich said this presents an opportunity for the UAE to attract crypto talent.
Related: UAE free zone to explore Bitcoin payments for services, lawyer says
Increased interest in tokenization and gaming
Froehlich said there has been a focus on Real-World Asset (RWA) tokenization and gaming in the local Dubai crypto space. He added:
“I think now we’re coming to a point with real-world asset tokenization, where there are credible projects that we are engaging with who could be helping with the economic development of Ras Al-Khaimah and the UAE.”
Also, on May 6, casino operator Wynn announced the planned 2027 opening of a gaming resort at Ras Al Khaimah. Froehlich said more blockchain-based projects may enter the emirate on the back of this development.
“There are a lot of side projects or byproducts that touch the gaming side and attract interest,” he said.
Magazine: Web3 Gamer: Bitcoin Halving will pump games, Shrapnel’s ‘simple’ secret revealed