The UAE Securities and Commodities Authority approved a major deal with the Dubai World Trade Centre Authority [DWTCA] to encourage the trading of cryptocurrency assets in the free zone as the country continues to strengthen its digital economy.
Under the framework of the deal, the DWTCA will be able to issue the mandatory approvals and licenses to handle crypto assets-related financial activities. The initiative will also allow the Dubai authority to augment its existing business licenses, services, and incentives. On the other hand, SCA will manage important crypto-focussed activities, such as issuance, listing, trading as well as licensing processes.
UAE embracing blockchain to foster digital-led economy
Dr. Maryam Al Suwaidi, Acting CEO of SCA stated that the agreement comes in response to directives from Abdulla bin Touq Al Marri, who happens to be the Minister of Economy and SCA Board Chairman, in a bid to improve collaboration and exchange knowledge and expertise with different government departments, authorities, and institutions to work together and accomplish common objectives. The exec also added,
“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.”
This isn’t the first time that the two prominent UAE authorities have joined forces. Earlier in May, the DWTCA and the SCA had entered a similar agreement to spur the crypto industry development in the Dubai Airport Free Zone Authority.
While admitting that the UAE has been at the forefront of blockchain research and implementation, Helal Saeed Al Marri, Director-General of Dubai World Trade Centre Authority and Dubai Department of Tourism and Commerce Marketing [DTCM] revealed that the latest move is in line with the Emirates Blockchain Strategy. In addition to that, the Bitcoin Fund was listed on the Nasdaq Dubai exchange in June this year, marking the first of its kind to trade in the region.
Al Marri also touched upon the subject of increasing hype over non-fungible tokens [NFTs] and added that innovations such as this will play a crucial role in the future of commerce and that the DWTCA is exploring ways to provide a sustainable home for this ecosystem.