Dubai Free Zone gives green light to crypto trading


A free economic zone in Dubai took another step towards becoming a global hub for the cryptocurrency industry on Wednesday when it signed an agreement with the United Arab Emirates’ Securities and Commodities Authority (SCA) to trade crypto assets.

Find out how smart money plays the crypto game. Subscribe to our premium newsletter – Crypto Investor.

The oil-rich country has said cryptocurrency will be an integral part of its ambitions to double its economy over the next decade.

The agreement creates a framework for the Dubai World Trade Center Authority (DWTCA) to authorize and obtain approvals for all cryptocurrency-related activities in the free zone. This will include the issuance, listing, licensing and trading of crypto.

“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” said ACS Acting Executive Director Maryam Al Suwaidi. , told local media.

The Gulf Kingdom hopes to leverage blockchain technology and cryptocurrencies in its quest to pursue digital transformation. At present, the UAE’s digital economy generates $ 27 billion and constitutes 4% of the country’s GDP. However, as more crypto companies move to the Dubai Free Zone, the emirate hopes to create a sustainable ecosystem for the growth and expansion of the industry and capitalize on the success of NFTs in the World trade.

Currently, the UAE Central Bank does not license cryptocurrencies and the country only accepts UAE dirham as legal tender. Abu Dhabi’s global market is home to a myriad of crypto exchanges, however, and the wealthy emirate already has a blockchain adoption strategy that he hopes will save the federal government Dh11 billion in transactions. financial, as well as 77 million hours of work.

Crypto is also increasingly popular among investors in the UAE. A recent survey by UK-based Nickel Digital Asset Management found that half of UAE investors aim to increase their exposure to cryptocurrency assets by 2023.

In April, 3iQ, the Canada-based digital asset management company, obtained regulatory clearance to list the Middle East’s first indexed crypto fund on the Nasdaq Dubai. The public Bitcoin fund holds around $ 1.5 billion in assets under its control.


Comments are closed.