TL;DR Breakdown
- The financial authorities of the United Arab Emirates have agreed to legalize crypto trading in the nation.
- This activity will be allowed within the Dubai World Trade Centre Authority free zone.
- It has also been agreed that the Securities and Commodities Authority will be responsible for the trading activities and technicalities.
The United Arab Emirates financial regulators have officially approved cryptocurrency trading in Dubai’s economic free zone. The authorities are continuously making efforts by bringing more regulations to escalate crypto adoption in the country.
On Wednesday, the Dubai World Trade Centre Authority (DWTCA) and the Securities and Commodities Authority (SCA) of UAE came together to allow cryptocurrency trading within DWTCA free zone by signing an agreement.
According to the agreement, the SCA will oversee all the crypto-related arrangements and actions, like issuance, listing, and trading. The new action of the United Arab Emirates creates a framework allowing the DWTCA to bring needed regulatory licenses to set up cryptocurrency trading and financial activities. This action and deal strengthen UAE’s dedication to becoming a crypto-friendly international hub.
The agreement was made in the presence of SCA’s Chief Executive Officer (CEO), Maryam Al Suwaidi. Helal Saeed Al Marri, the director-general at DWTCA, was also present at the event along with an executive at the Dubai Department of Tourism and Commerce Marketing.
Dubai, the next crypto haven?
At the start of September 2021, Stephen Stenberg, CEO of Bittrex Global, during an interview, said that Dubai is a perfect place to start a crypto token project or to establish a crypto exchange which the officials massively supported at that time. The reflections are now visible through the recent agreement.
Al Suwaidi stated that DWTCA is committed to increasing its functionalities and services as a free zone, and so several projects are coming in line. He added that Dubai would continue its digital-led economy and new technologies like Blockchain and Non Fungible tokens(NFTs).
In April, Abdulla Bin Touq Al Marri, UAE’s Minister of Economy, had signaled the arrival of cryptocurrency trading. He stated that crypto and asset tokenization would be the driving force to the country’s aim of doubling its economy in the next 10 years.
