UAE lawmakers approve crypto trading in Dubai free zone
United Arab Emirates’ financial regulators have finally reached an arrangement to officially permit the usage and support of cryptocurrencies in the economic free zone in Dubai.
The Dubai World Trade Centre Authority (DWTCA) has made an announcement this Wednesday that it has made an agreement with the UAE’s Securities and Commodities Authority (SCA) for supporting the regulation to trade crypto assets within the DWTCA free zone.
The new initiative makes a formal framework empowering the DWTCA with the issuance of approvals and licenses for all financial activities relating to cryptocurrencies. Under the agreement, the SCA would also supervise all crypto-related activities, including listing, issuance, trading and licensing procedures.
As per the announcement, the agreement had been signed by Maryam Al Suwaidi (SCA acting CEO), Helal Saeed Al Marri (DWTCA director-general ) and one executive officer from the Dubai Department of Tourism and Commerce Marketing.
Al Suwaidi has said that the new project on crypto comes to fulfil the DWTCA’s commitment to the expansion of services as a free zone and to support new technologies like nonfungible tokens.
Al Suwaidi also added that as the city of Dubai continues its journey towards an innovative digital-led economy, DWTCA is eager to support all kinds of businesses that are “underpinned by blockchain and cryptographic technologies.”
The new agreement is believed to reinforce the UAE’s growing commitment to becoming a crypto-friendly global hub.
The UAE authorities had previously entered into a similar agreement to support and encourage the crypto industry development in the Dubai Airport Free Zone Authority back in May 2021.
Minister of Economy in the UAE, Abdulla Bin Touq Al-Marri had declared in April 2021 that cryptocurrencies and asset tokenization would be critical aspects of the country’s plans to double its economy in the coming 10 years.