The adoption of crypto assets received a massive push on 22 September after the Securities and Commodities Authority (SCA), UAE’s financial regulator and the Dubai World Trade Centre Authority (DWTCA) signed an agreement to facilitate the Regulation , offering, issuance, listing and trading of crypto assets and related financial activities within DWTCA’s free zone.
In an official announcement, the authorities mentioned that the agreement will establish a framework to issue the necessary approval and licenses for the conduct of financial activities relating to crypto-assets. The SCA will take care of the regulatory requirements related to the issuance, listing and trading of crypto assets under the jurisdiction of DWTCA.
According to the agreement, UAE’s Securities and Commodities Authority will monitor and inspect crypto companies operating within the free zone of DWTCA. The mentioned agreement was signed by Maryam Al Suwaidi, Acting CEO of SCA and Helal Saeed Al Marri, Director-General of Dubai World Trade Centre Authority (DWTCA).
"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 free zone. The SCA will also supervise, control and investigate the licensed entities that operate within the free zone," Al Suwaidi said.
UAE’s Crypto Ecosystem
In the last few months, the crypto market in UAE has seen a significant jump in adoption as leading global Blockchain firms and asset management companies have opened their offices in the region. In November 2020, Ripple selected Dubai for its regional headquarters.
"The Dubai World Trade Centre Authority is committed to expanding its services as a free zone of choice for the international investment and entrepreneurial community. As Dubai continues its drive towards innovation and a digital-led economy, DWTCA is looking to support businesses underpinned by blockchain and cryptographic technologies. Our agreement with the Securities and Commodities Authority will allow DWTCA to broaden its regulatory, licenses and services capabilities, in addition to extending the centralized supervision of the crypto market to our free zone,” Al Marri commented.
