The uptake of cryptocurrencies in the Middle East is greater than ever. And regulatory frameworks to support cryptocurrency-related financial services are evolving.
United Arab Emirates Securities and Commodities Office (SCA) signed an agreement with the Authority Dubai World Trade Center (DWTCA). This agreement aims to support the regulation and trade in cryptocurrencies in the DWTCA free customs zone. About the report informed United Arab Emirates Press Agency (WAM).
Details of the agreement
The agreement establishes a framework that allows the DWTCA to issue the necessary approval and licensing for financial activities related to cryptocurrencies.
Under the agreement, SCA will also oversee major cryptocurrency activities. These include overseeing the issuance, supply, quotation and trade of cryptocurrencies. As well as the licensing of related financial activities that fall within the jurisdiction of the DWTCA. Acting CEO of SCA Dr. Maryam Al Suwaidi and CEO of DWTCA and the Dubai Department of Tourism and Trade Marketing (DTCM) Helal Saeed Al Marri signed the agreement.
Dr. Al Suwaidi stated: “SCA will be responsible for the regulatory oversight of the supply, issuance, trading and classification of cryptocurrencies and the licensing of financial activities related to them within the DWTCA free zone. SCA will also supervise, control and investigate licensed entities operating in the free zone. “
The CEO of DWTCA said he was committed to expanding them free zone services as an option for the international investment and business community. It also seeks to support businesses based on blockchain and cryptographic technologies.
“With the rise of new technologies such as unmistakable tokens to play an important role in the future of business, and the Future Blockchain Summit, our globally recognized industry event, DWTCA is also looking for ways to offer a sustainable home for the ecosystem to stay ready for the future, “ he stated below. He concluded that the United Arab Emirates was at the forefront of blockchain research and implementation. The Office’s ambitions are therefore in line with the Emirates Blockchain Strategy.
Adoption of a cryptocurrency in the United Arab Emirates
In an effort to pioneer blockchain technology, the United Arab Emirates launched UAE strategy for blockchain 2021. Subsequently, it will be 50% of government transactions carried out using technology blockchain during 2021. To achieve this, they have recently been issued regulation of the use of crypto assets, including cryptocurrencies. Jurisdiction as Abu Dhabi Global Market (ADGM) a Dubai International Financial Center (DIFC) issued their crypto regulations.
Local stock exchange Nasdaq Dubai listed on the stock exchange in june public BTC Fund from the Canadian Digital Asset Fund Manager 3iQ. It was about the first cryptocurrency fund in the Middle East. With the advent of international organizations, virtual currency and blockchain technologies will soon enter normal transactions. According to the survey, institutional investors and wealth managers in the United Arab Emirates are planning until 2023 increase their exposure to cryptocurrency assets.