The Dubai World Trade Centre Authority (DWTCA) has announced a partnership with the UAE’s Securities and Commodities Authority (SCA) to legalize cryptocurrency trading, issuance, and regulation.
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 release, the development provides DWTCA the right to issue the appropriate approvals and licenses for all crypto-related businesses in the city.
The SCA will be in responsible of regulatory monitoring of all digital asset activities within the DWTCA economic freezone, including issuing, listing, trading, and licensing of all tokens.
Dr. Al Suwaidi said the agreement was reached in response to directions from Abdulla bin Touq Al Marri, the board chairman of the Ministry of Economy and SCA, that regulators should collaborate to achieve common aims.
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 Becoming a Crypto-Friendly Centre
Al-Marri reacted to the news by saying that it will assist the DWTCA extend its line of services in order to attract international investments and other entrepreneurial activity.
Since Dubai is pursuing innovation and a digital-led economy, Al-Marri stated that the DWTCA will not fail to encourage blockchain-related enterprises, as he believes they will be a vital component of the global payment sector.
“With the rise of new technologies such as non-fungible tokens set 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 stay future ready,” Al Marri said.
While this isn’t the first time the two governments have worked together, it’s evident that DWTCA is dedicated to become a crypto-friendly hub in order to attract additional international investment.
Adoption of Blockchain in Dubai
Apart from formally endorsing cryptocurrencies, Dubai has made major strides toward being a global leader in blockchain usage.
The emirate, which launched the Smart Dubai Initiative last year, aspires to be the world’s first totally DLT-powered metropolis.
Mashreq Bank, Dubai’s oldest private bank, used blockchain technology last year to improve customer security and develop a smart banking platform.