TL;DR Breakdown
- Cryptocurrency trading becomes legal in Dubai after SCA, DWTCA agreement.
- Dubai steadily becoming a crypt-friendly hub.
- UAE becoming a world leader in global blockchain adoption.
Authorities in the United Arab Emirates (UAE) have approved for cryptocurrency trading to have legal backing in the economic free zone in Dubai.
The Dubai World Trade Center Authority (DWTCA) announced on Wednesday it had agreed with the UAE’s Securities and Commodities Authority (SCA) to make cryptocurrency trading, issuance, and regulation legal in the DWTCA free zone.
What legal cryptocurrency trading in DWTCA free zone means
The new initiative enables the DWTCA to issue necessary approvals and licenses for financial activities related to cryptocurrencies. However, per the agreement, the UAE SCA would supervise major crypto-related activities, such as issuance, listing, trading, and licensing processes.
The agreement was endorsed 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).
While speaking on the initiative, Dr. Al Suwaidi, SCA CEO, said the agreement comes after the Ministry of Economic and SCA directed regulators to work collectively to achieve common goals.
UAE becoming a crypto-friendly hub
Al-Marri, DWTCA DG, while speaking, said the move would further help the free zone expand its list of services and attract international investments and other entrepreneurial activities.
He noted that since Dubai is driving toward innovation and a digital-led economy, the DWTCA will continue to support blockchain-related businesses noting that they would become an integral part of the global payment industry.
The DWTCA appears to be bringing Dubai to becoming a crypto-friendly hub as this is not the first time both parties (SCA and DWTA) would enter such an agreement.
Dubai as a country has been making significant moves in becoming a world leader in global blockchain adoption.
Last year, the country launched the Smart Dubai Initiative, which plans to be the first city to be fully powered by DLT. The country’s oldest bank, Mashreq Bank, also tapped blockchain technology to enhance customers’ security and create a smart banking platform.
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