WEB3:
In short, The Future. As dramatic as it sounds, let’s first understand the background.
Web1 was essentially internet 1.0, from the 1990s and early 2000s. “Open Protocols” were used to exchange information which were used by anyone, instead of just one specific entity. Concept of digital privacy was little to non-existent back then, with simpler internet usage. People mostly read web pages and chatted with friends or strangers.
Here comes Web 2, around mid-2000s. Facebook, Twitter (now X), and Wikipedia took everyone by storm. People started to create their own content. However, the “Free to Use” platforms weren’t so “free” after all. These companies mastered the art of utilizing customers' data, selling them to advertisers, while retaining total control over its use.
Web3 is internet 3.0, focusing on individual control of personal data and the use of technologies like blockchain and ultimately cryptocurrency. An ecosystem of the future is in the making.
TECHNOLOGIES SUPPORTED BY WEB3:
Blockchain:
To understand Blockchain, we need to understand Peer-to-Peer Networking.
A peer-to-peer network is one in which two or more devices share files and access to devices, without any need of an intermediary i.e. Decentralized. This is different from the traditional client-server networking where data is first sent to a server, before it reaches the user on the other end of the server i.e. Centralized.
A Blockchain is A digital database or a shared ledger, distributed among the nodes of a peer-to-peer network. As new data are added to a network, a new block is created and tied permanently to the chain. All nodes on the blockchain are then updated to reflect the change. This means the system is not subject to a single point of control or failure
For Businesses, Blockchain facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding).
Smart Contracts:
Smart contracts are well, smart … and automated. They auto-execute when specified conditions are met, like terms agreed on by a buyer and seller. Smart contracts are established in code on a blockchain that can’t be altered.
Digital Assets and Tokens:
These are items of value that exist only digitally. They can include cryptocurrencies, stablecoins, central bank digital currencies (CBDCs), and NFTs (non-fungible tokens). They can also include tokenized versions of assets, including real things like art or tickets to concerts or sporting events.
CRYPTOCURRENCY, A VIRTUAL ASSET:
The Web3 digital future is all about “Control” over your transactions, content, and data. In recent times, people have shown increased interest in Taking The Control Back from the giant tech corporations who have been feeding off of the customer data for decades.
Cryptocurrencies is Digital Money, a part of an Ecosystem of the future based on Blockchain. Lets share a few examples of how Cryptocurrency and Blockchain can actually be useful.
USAGE IN REAL WORLD:
IMAGINE … a manufacturer in a developing country who wants to export their produce to international markets. Traditionally, the manufacturer would face challenges such as lack of trust in middlemen, high transaction fees, and lengthy payment processing times. However, with blockchain technology and cryptocurrency, the manufacturer can now use a decentralized agricultural marketplace. Each produce batch is recorded on the blockchain, providing transparency and traceability throughout the supply chain. Smart contracts automatically execute payments once delivery is confirmed, eliminating the need for intermediaries and reducing costs. This enables the manufacturer to access global markets more efficiently and receive fair compensation for their goods.
CRYPTO & VIRTUAL ASSETS REGULATIONS IN UAE:
The cryptocurrency and blockchain in the UAE are governed and regulated by:
- Securities And Commodities Authority (SCA) at Federal Level for UAE Onshore companies. The compliance is based on Crypto Assets Activities Regulations (CAAR), Anti-Money Laundering Regulations (AML) and Know Your Customer (KYC) practices.
- Financial Services Regulatory Authority (FSRA) for Abu Dhabi Global Markets (ADGM) based companies.
- Dubai Financial Services Authority (DFSA) for Dubai International Financial Centre (DIFC) based companies.
- The Virtual Asset Regulatory Authority (VARA) for Virtual Assets Service Providers (VASPs) in Dubai, excluding DIFC.
Business owners in UAE must ensure they follow the regulations and require compliances for their businesses.
WHY UAE FOR WEB3, CRYPTO & BLOCKCHAIN:
UAE is geared towards a digital economy. Inherently has special perks and benefits attached to it:
- Crypto Friendly and Digital Economy Focused.
- No Personal Taxes
- Reduced Business & Corporate Tax Rate at 9%
- Small Business Relief Till 2026 with Zero (0) Corporate Tax.
- Earnings from Cryptocurrency, Salary, Capital Gains are Tax Free - whether you actively trade or hold.
- Reduced Transaction Fee hence Cost of Doing Business.
- Safest Country In The World.
WHY FINTAXONLINE:
We’re Chartered Accountants - We know the Law, Regulations and Compliances. Our knowledgeable team will ensure the required protocols for your Crypto and Related Business are followed and satisfied to the dot, and your Reporting Obligations are met. We will make doing business in the UAE easy for you.
We’re Tax Managers - Taxes are Boring, but are serious businesses. Taxes in UAE are supervised by the Federal Tax Authority (FTA). Not only we will assist with local UAE taxes, we’ll also assist with International Tax Optimizations. Let us handle the technicalities while you focus on your business.
We’re Accountants & Money Managers - That’s right, we’re the GPS to your finances. We will assist you in managing your money.
We’re Crypto Friendly - Digital Future is the need of the hour. Why not hop on the starship of the future with us? Let us guide you through the regulations.
We're Partner with Crypto Friendly Freezones - You read it right. Not only can we get you the best offers available, we will also assist you through the unique process for each freezones to set up your business in UAE.
GET YOUR TECH & CRYPTO BUSINESS LICENSE WITH FINTAXONLINE:
We can assist with the below activities for your business license needs in UAE, covering all emirates including Dubai, Abu Dhabi, Sharjah and Ras Al Khaimah.
- Artificial Intelligence
- Blockchain Development, Distributed Ledger Technology (DLT) Services & Software
- Computer Systems and Network Consultancies
- Cybersecurity and Cyber Risk Management
- Digital Assets Mining
- Digital Creator Marketplace Services
- Metaverse
- Non-Fungible Token (NFT)
- Programming and Software Development
- Proprietary Trading
- Tokenization of Real World Assets
- Virtual Reality (VR) & Augmented Reality (AR)
- Web3 Accelerators
- Web3 Consultancy & Services
- Web3 Incubators
- Web3 Venture Studio
- Virtual Assets Regulatory Authority (VARA) License
- Crypto Exchange License