Authorities in Dubai have joined forces to make it legal to issue and trade cryptocurrencies within the DWTCA freezone.
The Dubai World Trade Center Authority (DWTCA) recently announced a collaboration with the UAE’s Securities and Commodities Authority (SCA) to make cryptocurrency trading, issuance, and regulation entirely legal within its jurisdiction – the DWTCA freezone.
The DWTCA makes cryptocurrency activities legal.
Notably, the agreement was signed by the SCA’s acting CEO, Dr. Maryam Al Suwaidi, the DWTCA’s director-general, Helal Saeed Al Marri, and a Dubai Department of Tourism and Commerce Marketing executive (DTCM).
According to the announcement, the development gives DWTCA the authority to issue the necessary approvals and licenses for all crypto-related activities in the city.
The SCA will be in charge of regulatory oversight of all digital asset activities relating to the offering, listing, trading, and licensing of all tokens within the DWTCA economic freezone under this partnership.
Dr. Al Suwaidi, commenting on the move, stated that the agreement follows directives from Abdulla bin Touq Al Marri, board chairman of the Ministry of Economy and SCA, that regulators should work collaboratively to achieve common goals.
According to the agreement, “the SCA will also supervise, control, and investigate the licensed entities that operate within the free zone,” according to Dr. Al Suwaidi.
Developing into a Crypto-Friendly Hub
Al-Marri responded to the news by saying that the move will help the DWTCA expand its list of services in order to attract international investments and other entrepreneurial activities.
Al-Marri stated that because Dubai is promoting innovation and a digital-led economy, the DWTCA will not hesitate to support blockchain-related businesses, believing that they will be an integral part of the global payment industry.
“With the rise of new technologies such as non-fungible tokens poised to play an important role in the future of commerce, […] DWTCA is pursuing ways to offer a sustainable home for this ecosystem in order to remain future ready,” Al Marri explained.
While this is not the first time both government parties have reached an agreement of this nature, it is clear that DWTCA is committed to becoming a crypto-friendly hub in order to attract new foreign investments.
Adoption of Blockchain in Dubai
Aside from officially endorsing cryptocurrencies, Dubai has made significant strides toward becoming a global leader in blockchain adoption.
The emirate, which launched the Smart Dubai Initiative last year, intends to be the first to be powered entirely by DLT.
Mashreq Bank, Dubai’s oldest private bank, used blockchain technology last year to improve customer security and create a smart banking platform.