Financial authorities in the United Arab Emirates have agreed to legalize and promote cryptocurrency trading explicitly in Dubai’s economic-free zone. The Dubai World Trade Center Authority (DWTCA) said on Wednesday it has inked a contract to promote the regulation and trading of crypto-assets inside the Free DWTCA area with the UAES Securities and Commodities Authority (SCA).
The latest initiative sets a structure for DWTCA to provide required permits and licenses for cryptocurrency financial operations. Under the deal, SCA is also responsible for overseeing key crypto-linked operations, including as issuance, listing, trading and licensing.
The statement that the agreement was inked by SCA interim CEO Maryam Al Suwaidi, DWTCA director-general Helal Saeed Al Marri, and an official at the Dubai Department of Tourism and Commerce Marketing, reads that the deal was announced on the date and time listed in the announcement. Al Suwaidi stated that the latest initiative is in keeping with the goal of the DWTCA to extend its facilities as a free zone and to promote new technologies like nonfungible tokens.
“As Dubai continues its push for innovation and a digital economy, DWTCA aims to assist enterprises supported by cryptography and blockchain technology,” he said. A similar deal was signed in May to spur the growth of the cryptocurrency sector at the Dubai Airport Free Zone Authority.
Under the terms of the new agreement, the UAE has fully embraced cryptocurrency as a tool for global expansion. Minister of GDP Abdulla Bin Touq Al Marri has stated that in order to quadruple the country’s economy in ten years, cryptocurrency and asset tokenization would be critical. In June of this year, the Dubai International Financial Exchange (DIFC) announced that it will list a public Bitcoin fund that was created by Canadian digital asset investment fund manager 3iQ.
