Like always, there have been many opportunities in UAE to manage a well-regulated ecosystem for businesses seeking local and international opportunities and to provide an ideal environment for startups, SMEs, and companies to operate locally and targeting international markets in the region. One of the recent announcements of a framework that allows the DWTCA to issue the necessary approvals and licenses for the conduct of financial activities relating to crypto-assets.
This enables Securities and Commodities Authority (SCA) to assist and monitor activities regarding required permissions, regulations and licenses for the conduct of financial operations involving cryptocurrency assets within Dubai World Trade Centre Authority free zone areas jurisdiction.
In recent years, crypto-assets, or more specifically cryptocurrencies, have risen to the top of the global hot topic list. The trading of cryptocurrencies has increased in recent months, resulting in increased levels of volatility that have drawn broad attention from the general public and the mainstream media alike.
Dubai Crypto Asset Trading
In recent months, Dubai, the region’s financial center, has taken a number of initiatives to increase the usage of blockchain technology in the city.
Dubai has an excellent opportunity to take advantage from the Middle East’s booming cryptocurrency industry because of the leadership of its authorities, who are driving towards the adoption of blockchain-based technologies.
SCA and DWTCA’s Alliance
Improving the digital-led economy, Dr. Maryam Al Suwaidi, acting chief executive officer of Securities and Commodities Authority (SCA), and Helal Saeed Almarri, the Director-General of the Dubai World Trade Centre Authority (DWTCA) and Dubai Department of Tourism and Commerce Marketing (DTCM) endorsed to expand its existing business licenses, services, and incentives.
The new agreement further emphasizes on the UAE’s increasing commitment to becoming a crypto-friendly key location. Dubai World Trade Centre Authority has stated that SCA will assist the regulation of offering and trading of crypto assets and associated financial operations within its free zone.
The SCA will improve DWTCA’s regulatory and licensing as well as the number of services it offers and will be responsible for the supervision of all the activities related to the crypto asset trading under DWTCA’s sovereignty.
Dubai’s DMCC First Free Trade Zone
Last year, DMCC (Dubai Multi Commodities Centre) – the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprise utilized the cutting-edge blockchain technology and launched the DigitalSugar Trading Platform.
It was the first global exchange to offer traders and investors raw sugar on a spot basis. It was made to broaden the range of commodities traded through Dubai. Later in June, the Bitcoin fund debuted on the NASDAQ Dubai and became the Middle East’s first listed cryptocurrency fund.
World’s Fastest Growing Free Zone
Dubai World Trade Centre Authority (DWTCA) is committed to growing its services as a preferred free zone for international investment and entrepreneurs. As Dubai continues its journey towards an innovation- and digital-driven economy, the DWTCA is aiming to assist blockchain and cryptography technology-based enterprises like NFT’s (Non-fungible tokens).
The agreement between the authorities is the beginning to enhance the collaboration between different levels of government to help them reach common goals.
The Bottom Line!
The acceptance of cryptocurrencies in the Middle East is at its highest level ever. Regulations to support cryptocurrency-related financial services are also becoming more prevalent.
There is one thing that is certain as the crypto market enters its second decade: crypto is not going away anytime soon. Hundreds of new major investors and financial entities are getting involved in the cryptocurrency asset market, which is on its way to a new all-time high.