Dubai’s authorities continue to promote bitcoin usage by pursuing additional regulatory permits. The United Arab Emirates’ financial regulators have achieved an agreement to legally permit and support cryptocurrency trading in a Dubai economic-free zone.
The Dubai World Trade Centre Authority (DWTCA) stated Wednesday that it had entered into an agreement with the UAE’s Securities and Commodities Authority (SCA) to facilitate the regulation and trading of cryptocurrency within the DWTCA free zone.
The new effort creates a structure that enables the DWTCA to grant appropriate approvals and licenses for financial activity involving cryptocurrency. The SCA will also regulate significant crypto-related operations, including issuance, listing, trading, and licensing processes, as part of the deal.
The agreement was signed by SCA acting CEO Maryam Al Suwaidi, DWTCA director-general Helal Saeed Al Marri, and a Dubai Department of Tourism and Commerce Marketing officer, according to the release.
Al Suwaidi stated that the new project is consistent with the DWTCA’s aim to expanding its services as a free zone and embracing emerging technologies such as nonfungible tokens. “As Dubai continues its transition to an innovation- and digital-driven economy, the DWTCA is eager to encourage enterprises that are built on blockchain and cryptography technologies,” he added.
The DWTCA and the SCA did not immediately react to a request for comment from Cointelegraph. In May, the authorities entered into a similar deal to support the development of the crypto business in the Dubai Airport Free Zone Authority. The new agreement reaffirms the UAE’s strong commitment to being a cryptocurrency-friendly global financial hub.
In April, Economy Minister Abdulla Bin Touq Al Marri stated that cryptocurrencies and asset tokenization will be critical to the country’s 10-year ambition to quadruple its economy. Nasdaq Dubai, the local stock exchange, later listed a public Bitcoin (BTC) fund managed by Canadian digital asset investment fund manager 3iQ in June.
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