UAE officials have approved crypto trading by establishing a regulatory framework on the cryptocurrency market in the Dubai free zone.
Officials In The UAE Approve Crypto Trading In The Dubai Free Zone
The new effort creates a structure that will allow the DWTCA to grant the required approvals and licenses for financial activity using cryptocurrency.
The SCA will also oversee important crypto-related operations like issuance, listing, trading, and licensing as part of the deal.
The Dubai World Trade Centre Authority (DWTCA) stated on September 22 that it has inked a deal with the Securities and Commodities Authority (SCA) of the UAE to facilitate the regulation and trading of crypto assets within the DWTCA free zone.
According to Al Suwaidi, the new initiative is in keeping with the DWTCA’s goal of expanding its free zone services and supporting new technologies such as nonfungible tokens.
“As Dubai pursues an innovation and digital-led economy, DWTCA is aiming to assist firms built on blockchain and cryptography technologies,” he said.
The agreement was signed by SCA’s interim CEO Maryam Al Suwaidi, DWTCA director-general Helal Saeed Al Marri, and a Dubai Department of Tourism and Commerce Marketing officer, according to the statement.
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In May, the Dubai Airport Free Zone Authority entered into a similar arrangement to encourage the development of the crypto sector.
The new agreement strengthens the UAE’s growing commitment to being a crypto-friendly global center.
In April, Economy Minister Abdulla Bin Touq Al Marri stated that cryptocurrencies and asset tokenization will be critical to the country’s aspirations to quadruple its economy in ten years.
In June, the local stock market Nasdaq Dubai listed a public Bitcoin (BTC) fund managed by Canadian digital asset investment fund manager 3iQ.