UAE Financial Authorities Approve Cryptocurrency Trading
The Securities and Commodities Authority (SCA) and the Dubai World Trade Centre Authority (DWTCA) have signed an agreement supporting the regulation, issuance, listing, and trading of crypto assets and blockchain-related financial activities within the DWTCA free trade zone, according to a press release on December 22, 2021.
The UAE Lures Crypto Startups
In a bid to make the United Arab Emirates a hotbed for blockchain and cryptocurrency-related businesses, the region’s stock market regulator, the Securities and Commodities Authority (SCA) have signed an agreement with the Dubai World Trade Centre Authority (DWTCA) to create an enabling environment for these startups to thrive.
According to a joint statement by the SCA and DWTCA, crypto assets regulation, offering, issuance, listing, and trading, as well as other blockchain-related financial activities, will now be supported within the free trade zone.
The agreement, which was signed by H.E. Dr. Maryam Al Suwaidi, Acting CEO of the SCA, and H.E. Helal Saeed Almarri, Director General of DWTCA and Dubai Department of Tourism and Commerce Marketing (DTCM), provides a framework that would allow the regulator to grant licenses and approvals to crypto-focused businesses.
Promoting Innovation
H.E Almarri said the decision to make blockchain-based businesses part of the rapidly expanding DWTCA free trade zone is in line with Dubai’s drive towards an innovative and fully digital economy.
In his words:
“The DWTCA 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 innovation and digital-led economy, DWCA is looking to support businesses underpinned by blockchain and cryptographic technologies.”
Under the new agreement, crypto businesses will come under the purview of the SCA. The agency will supervise the offering, issuance, listing, and trading of crypto assets, as well as the licensing of related financial activities within the DWTCA.
The authorities have made it clear that they plan to implement amenable regulations that would enable crypto startups to strive, while also protecting the interest of consumers.
“With the rise of new technologies such as NFTs set to play an important role in the future of commerce, and building on the Future Blockchain Summit, our globally-recognized even in this sector, DWTCA is also pursuing ways to offer a sustainable home for this ecosystem, in order to stay future-ready,” added Almarri.
