UAE allows crypto trading
in Dubai free trade zone
Financial authorities in the United Arab Emirates have signed an agreement to allow cryptocurrencies to be traded and regulated in the Dubai Free Trade Zone. This is one of the initiatives with which the country aims to become a global crypto hub.
The Dubai World Trade Centre Authority (DWTCA) announced that it has reached an agreement with the Securities and Commodities Authority (SCA) to help regulate crypto assets in the free zone.
Based on this agreement, the DWTCA now issues the necessary licences and permits for financial activities related to crypto transactions. On the other hand, the SCA’s role is to provide regulatory oversight of such financial activities, from issuance to listing to trading in cryptocurrencies.
According to the announcement, Helal Saeed Al Marri, director general of DWTCA and also the country’s minister of sports, and the acting CEO of SCA, Dr Maryam Al Suwaidi, signed the agreement.
In May, there was already a similar agreement between the two authorities. It was about training in crypto-related issues within the Dubai Airport Free Zone Authority (DAFZA).
Dubai’s plans for cryptocurrencies
This is a crucial step to support crypto trading in the economic free zones, especially since Dubai has 30 such zones. These free zones offer customs and tax incentives to foreign investors.
As Dubai and the UAE continue to expand towards innovation and the digital economy, the new partnership aims to support companies involved in blockchain and crypto technologies.
Al Marri said the agreement is in line with the country’s plan to expand its services as a „free trade zone of choice for the international investment and entrepreneurial community“.
In addition, he shared that DWTCA continues to work on building the globally recognised Future Blockchain Summit event. They are also looking at ways to provide a sustainable home for the digital currency ecosystem to remain viable.
The region is keen to gain more prominence in the crypto industry. The development of the Emirates Blockchain Strategy also aims to achieve this. By 2021, 50% of government transactions are expected to take place on the blockchain platform.
Unlike other countries, the UAE is determined to become a crypto trading hub of the world. They are more open to adopting the latest global innovations and technology practices such as cryptocurrencies, even at the government level.