The Securities and Commodities Authority (SCA) and the Dubai World Trade Centre Authority (DWTCA) have agreed to support the regulation of crypto-assets within DWTCA’s free zone.
This includes offering issuance, listing and trading of cryptocurrencies. The DWTCA will be able to issue the necessary approvals and licenses.
Maryam Al Suwaidi, CEO of SCA, and Helal Saeed Al Marri, Director-General of Dubai World Trade Centre Authority (DWTCA), signed the partnership together with the Dubai Department of Tourism and Commerce Marketing (DTCM).
The SCA is, therefore, charged with the regulatory oversight of the financial activities that fall under DWTCA’s jurisdiction.
“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,” Al Suwaidi stated.
He added that 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,” he noted.
Dubai going towards digital-led economy
Al Marri explained that “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 and UAE continue their drive towards innovation and a digital-led economy, the DWTCA said it 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, licenses and services capabilities, in addition to extending the centralised supervision of the crypto market to our free zone,” he added.
“The UAE has been at the forefront of blockchain research and implementation and our ambition is in line with the Emirates Blockchain Strategy.”
The authorities already signed a similar deal in May in order to stimulate the crypto industry development in the Dubai Airport Free Zone Authority.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.