The UAE Securities and Commodities Authority (SCA) and the Dubai World Trade Centre Authority (DWTCA) have announced plans to commence cryptocurrency asset trading and other related financial services in the DWTCA freezone.
According to the agreement, the DWTCA will formulate a framework to issue the necessary licenses and registrations needed by the firms that want to offer crypto trading services. These firms will be regulated and monitored by the SCA.
Boosting the Growth of the DWTCA Freezone
The DWTCA has been active in attracting more local and international firms to the zone. With this partnership, the DWTCA will extend the licenses, products and offerings that it can support. Together with the SCA, DWTCA will issue the necessary licenses to the crypto asset firms.
The DWTCA is a zone that offers fair regulations for businesses targeting local and international markets. The freezone is made up of startups, small and medium-sized enterprises looking to achieve a greater market reach.
Commenting on this partnership, the CEO of the SCA stated, “the SCA will be responsible for the regulatory supervision of offering, issuing, trading, and listing crypto assets and the licensing of financial activities related to them within the limits of the DWTCA freezone. The SCA will also supervise, control, and investigate the licensed entities that operate within the free zone.”
Tapping into Innovative Technology
Dubai has been agile in developing ways of attracting innovative businesses that want to access the rapidly growing UAE market. Helal Saeed Almarri, Director-General of the DWTCA, stated that the move would support businesses looking into blockchain and cryptographic technologies.
Almarri also stated that the partnership between the DWTCA and the SCA would allow the authority to expand its oversight in the financial markets. Furthermore, it would also bring a centralized regulatory framework for crypto firms operating in the zone.
Almarri also mentioned non-fungible tokens (NFTs), stating that the boom of these technologies would play an integral role in the future of commerce. For this reason, the DWTCA was looking into providing a hub for these businesses to operate in the freezone, and the partnership with the SCA was one of the ways to achieve this.