Dubai World Trade Center Authority (DWTCA) announced recently that it has partnered with the UAE’s Securities and Commodities Authority (SCA) to make cryptocurrency trading, issuance, and regulation completely legal within its jurisdiction – the DWTCA freezone.
DWTCA Makes Crypto Activities Legal
Notably, the agreement was signed by the acting CEO of the SCA Dr. Maryam Al Suwaidi, DWTCA director-general Helal Saeed Al Marri, and an executive at the Dubai Department of Tourism and Commerce Marketing (DTCM).
The development gives DWTCA the authority to issue the necessary approvals and licenses for all crypto-related activities in the city, the announcement reads.
Under this partnership, the SCA will be in charge of regulatory oversight of all digital asset activities relating to the offering, listing, trading, and licensing of all tokens within the DWTCA economic freezone.
Commenting on the move, Dr. Al Suwaidi said the agreement comes following directives from Abdulla bin Touq Al Marri, the board chairman of the Ministry of Economy and SCA, that regulators should work collectively to achieve common goals.
Dr. Al Suwaidi added that under the agreement, “the SCA will also supervise, control, and investigate the licensed entities that operate within the free zone.”
Becoming a Crypto-Friendly Hub
Reacting to the development, Al-Marri noted that the move will further help the DWTCA to expand its list of services in order to attract international investments and other entrepreneurial activities.
Al-Marri noted that since Dubai is driving toward innovation and a digital-led economy, the DWTCA will not fail to support blockchain-related businesses, as he believes they will be an integral part of the global payment industry.
“With the rise of new technologies such as non-fungible tokens set to play an important role in the future of commerce, […] DWTCA is pursuing ways to offer a sustainable home for this ecosystem, in order to stay future ready,” Al Marri said.
While this is not the first time both government parties will be entering into a similar agreement, it is clear that DWTCA is committed to becoming a crypto-friendly hub in order to attract new foreign investments.
Dubai Blockchain Adoption
Aside from officially throwing its weight behind cryptocurrencies, Dubai has been making significant moves in becoming a world leader in global blockchain adoption.
The emirate, which launched the Smart Dubai Initiative last year, plans to be the first city to be fully powered by DLT.
Last year, Dubai’s oldest private bank, Mashreq Bank, tapped blockchain technology to enhance customers’ security and create a smart banking platform.