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| Dubai allows legal transactions for cryptocurrency |
The UAE Financial Supervisory Authority has proposed a formula that officially allows and supports cryptocurrency transactions. It is located in the Dubai World Trade Center Authority Free Zone.
The Dubai World Trade Center Authority (DWTCA) announced that it has signed an agreement with the UAE Securities and Commodities Authority (SCA) to support the monitoring and trading of crypto assets in the DWTCA Free Zone.
The new initiative creates a framework that enables the Dubai World Trade Center Authority to issue the necessary permits and licenses for cryptocurrency related financial activities.
Under the terms of the agreement, SCA will therefore monitor key crypto-related activities. Such as issuance, listing, trading and licensing processes.
According to the announcement, the agreement was signed by Maryam Al Suwaidi, Executive Vice President of the Licensing, Control and Enforcement Department at the Securities and Commodities Authority, and Helal Saeed Al Marri, Director of the Dubai World Trade Center Authority, in his capacity as the managing director of the Dubai World Trade Center. Department of Tourism and Business Marketing in Dubai.
Al-Suwaidi said that the new project is in line with the commitment of the Dubai World Trade Center Authority to expand its services into a free zone. In addition to supporting new technologies such as non-fungible NFT tokens.
She added, “As Dubai continues to innovate and pursue the digital economy, the Dubai World Trade Center Authority seeks to support blockchain-based businesses and crypto businesses.”
On his part, Helal Saeed Al Marri said: The Dubai World Trade Center Authority would like to improve its position by expanding its services. This will become one of the distinguished free zones in the international investment and business circles.
He added, “The agreement we have with the Securities and Commodities Authority enables the Dubai World Trade Center Authority to expand its regulatory framework, scope of licenses and the services it provides, as well as the central supervision of crypto-assets – the Market Authority. Our clients provide services in a free zone.”
Dubai ready to benefit from cryptocurrency growth
The authorities had already reached a similar agreement in May to encourage the development of the crypto industry at the Dubai Airport Free Zone Authority.
Hence, the new agreement underscores the UAE's growing commitment to becoming a global crypto-friendly hub.
Economy Minister Abdullah bin Touq Al-Marri announced in April that cryptocurrencies and assets are central to the country’s plan to double its economy within 10 years.
Additionally, Nasdaq Dubai listed its BTC mutual fund in June. This was done by the managers of 3iQ, a Canadian digital asset mutual fund.
Dubai can benefit from the expanding cryptocurrency market in the Middle East. Local regulators are increasingly accepting blockchain-related technologies.
According to the Tax Justice Network. In March 2021, the UAE became one of the largest and fastest growing tax havens in the world. Connected to Switzerland and Bermuda.
In addition, the UAE has recently consolidated its influence in the field of digital assets. On the other hand, the UAE entered the global competition for the digital currency CBDC in July.