UAE stock market regulator, Dubai World Trade Centre Authority agree to support crypto assets trading

Published on: 23.09.2021

The United Arab Emirates Securities and Commodities Authority (SCA) and Dubai World Trade Centre Authority (DWTCA) have sealed an agreement to support crypto-assets trading and related financial activities in the DWTCA free zone.

The agreement establishes a framework that allows DWTCA to issue the necessary approvals and licenses for financial activities relating to crypto-assets. According to the agreement, SCA will oversee, monitor, and inspect entities operating within DWTCA’s freezone.

DWTCA has signed the agreement to expand its existing business licenses, services, and incentives. In collaboration with DWTCA, SCA will handle the regulatory oversight of the issuance, offering, listing, and trading of crypto assets as well as the licensing of the associated financial activities that fall under DWTCA’s jurisdiction.

The SCA aims to build a sustainable investment environment and safeguard the rights of investors, as well as promote sound practices, a statement said.

Meanwhile, the DWTCA offers a well-regulated ecosystem for businesses seeking local and international opportunities, while its Freezone provides an environment for startups, SMEs, and corporations to operate locally while reaching global markets.

Dr. Maryam Al Suwaidi, acting chief executive officer of SCA, said:

“The SCA will be responsible for the regulatory supervision of offering, issuing, trading and listing crypto assets and the licensing of financial activities related to them within the limits of the DWTCA freezone. The SCA will also supervise, control and investigate the licensed entities that operate within the free zone.”

“As Dubai continues its drive towards innovation and digital-led economy, DWTCA is looking to support businesses underpinned by blockchain and cryptographic technologies. Our agreement with the Securities and Commodities Authority will allow DWTCA to broaden its regulatory, licenses, and services capabilities, in addition to extending the centralized supervision of the crypto market to our free zone.”

“With the rise of new technologies such as non-fungible tokens set to play an important role in the future of commerce, and building on the Future Blockchain Summit, DWTCA is also pursuing ways to offer a sustainable home for this ecosystem, in order to stay future-ready,” he stated.

“The UAE has been at the forefront of blockchain research and implementation and our ambition are in line with the Emirates Blockchain Strategy.”

The SCA and DWTCA also aim to exchange best practices relating to the project, as well as deliver mutual technical support to enhance understanding of both organizations’ financial systems. The partnership will also include the provision of professional services that specify the responsibilities and obligations of both parties, the statement added.

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