Financial regulators in the United Arab Emirates are set to allow and support cryptocurrency trading in an economic free zone in Dubai.
According to the Emirates News Agency, the Securities and Commodities Authority and the Dubai World Trade Centre Authority have entered into an agreement supporting the regulation, offering, issuance, listing, and trading of crypto assets and related financial activities within the DWTCA’s free zone.
The agreement was signed by acting Chief Executive of SCA, Dr Maryam Al Suwaidi, and Director-General of DWTCA and Dubai Department of Tourism and Commerce Marketing, Helal Saeed Al Marri.
Commenting on the agreement, Al Suwaidi said, “The agreement comes in response to directives from Abdulla bin Touq Al Marri, Minister of Economy and SCA Board Chairman, to enhance cooperation and exchange knowledge and expertise with various government departments, authorities, and institutions to work collaboratively and achieve common goals.
“The SCA will be responsible for the regulatory supervision of offering, issuing, trading and listing crypto assets and the licensing of financial activities related to them within the limits of the DWTCA free zone. The SCA will also supervise, control and investigate the licensed entities that operate within the free zone.”
Also speaking on the agreement, Al Marri said, “The Dubai World Trade Centre Authority is committed to expanding its services as a free zone of choice for the international investment and entrepreneurial community.
As Dubai continues its drive towards an innovation and digital-led economy, DWTCA is looking to support businesses underpinned by blockchain and cryptographic technologies.
“Our agreement with the Securities and Commodities Authority will allow DWTCA to broaden its regulatory, licences and services capabilities, in addition to extending the centralised supervision of the crypto market to our free zone.”
He added that with the rise of new technologies such as non-fungible tokens set to play an important role in the future of commerce, and building on the Future Blockchain Summit, the DWTCA was a way to offer a sustainable home for the new ecosystem, and to stay future ready.