The United Arab Emirates (UAE) securities regulator has signed an agreement that will allow digital currency trading in one of Dubai’s free zones. The deal will allow the free zone authority to license digital currency companies as the UAE seeks to position itself at the heart of the ever-growing industry.
Free zones in the United Arab Emirates are special economic zones created to provide tax benefits and tariffs to companies operating there.
The Securities and Commodities Authority (SCA) and the Dubai World Trade Center Authority (DWTCA) have reached an agreement to support the regulation, issuance, listing and trading of digital assets in the latter’s free zone.
The agreement will enable DWTCA to issue the licenses and approvals necessary to conduct financial activities related to digital currencies. While the DWTCA manages the issuance of the license, the securities regulator will provide regulatory oversight relating to the issuance, listing and trading of these assets. It will also monitor the entities operating in the free zone.
Maryam Al Suwaidi, interim CEO of SCA, signed the agreement on behalf of the regulator. In her comments, she revealed that the deal follows a directive from the UAE’s Minister of Economy that prompted various government departments to step up cooperation and exchange knowledge between them.
“The SCA will be responsible for the regulatory oversight of the offering, issuance, trading and listing of crypto assets and the authorization of related financial activities within the boundaries of the DWTCA Free Zone. . The SCA will also supervise, control and investigate the authorized entities that operate in the free zone, âshe commented.
The two authorities will provide mutual technical support to improve their mutual understanding of financial systems. They will also provide professional services that spell out the responsibilities and obligations of both parties.
Helal Saeed Al Marri, Managing Director of DWTCA, said: âWith the rise of new technologies such as non-fungible tokens, they are expected to play an important role in the future of commerce. [â¦] DWTCA is also looking for ways to provide sustainable housing for this ecosystem, in order to stay ready for the future. The UAE has been at the forefront of blockchain research and implementation and our ambition is in line with the Emirates Blockchain strategy. “
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