The financial regulators in the United Arab Emirates have signed an agreement to allow the trading and regulation of cryptocurrency in Dubai’s economic free zone. This green light for crypto trading is one of the initiatives taken by the country to become a global crypto hub.
The Dubai World Trade Centre Authority (DWTCA) announced that it had entered into an agreement with the Securities and Commodities Authority (SCA) to support the regulation of crypto-assets within DWTCA’s free zone.
Based on this agreement, the DWTCA will now be issuing the necessary licenses and approvals for the financial activities related to virtual currency transactions. On the other hand, the SCA’s role involves being the regulatory oversight of the financial activities that fall under DWTCA’s jurisdiction from issuance, listing to trading of cryptocurrencies.
According to the announcement, this agreement was signed by Helal Saeed Al Marri, Director-General of Dubai World Trade Centre Authority (DWTCA) and Dubai Department of Tourism and Commerce Marketing (DTCM), and the acting CEO of SCA Dr. Maryam Al Suwaidi.
In May, the two agencies had also signed a similar agreement to support crypto assets training within the Dubai Airport Free Zone Authority (DAFZA).
Dubai’s plans for cryptocurrency
This move to support crypto trading in the economic free zones is critical, especially since Dubai has over 30 such zones. These free trade zones offer custom duty benefits and tax concessions to foreign investors.
As Dubai and UAE continue to expand towards innovation and a digital-led economy, this new DWTCA partnership will support businesses involved in blockchain and cryptographic technologies.
Al Marri said the agreement aligns with the country’s plan to expand its services as a “free zone of choice for the international investment and entrepreneurial community.”
In addition, he also shared that on top of building the country’s globally recognized event, the Future Blockchain Summit, DWTCA is pursuing ways to offer a sustainable home for the digital currency ecosystem, in order to stay future-ready.
The region is keen on adopting crypto trading with the development of the Emirates Blockchain Strategy, which aims to transform 50% of government transactions into the blockchain platform by 2021.
Unlike some countries, the UAE region is fully committed to becoming a crypto trading hub. They are more open to adopting the latest global innovation and technology practices such as cryptocurrency, even at the government level.