The Securities and Commodities Authority (SCA) and the Dubai World Trade Centre Authority (DWTCA) have entered into an agreement that allows crypto trading businesses to obtain authorizations and licenses in the DWTCA’s free zone.
Dubai free zone for crypto trading activities
The SCA is the regulatory authority in Dubai, while the DWTCA is one of the “free zones” that are present in the Arab emirate.
Thanks to this agreement signed by Maryam Al Suwaidi, Acting Chief Executive Officer of SCA, and Helal Saeed Almarri, Director General of Dubai World Trade Centre Authority (DWTCA) and Dubai Department of Tourism and Commerce Marketing (DTCM), an ecosystem is being created for crypto activities that will support the regulation, issuance, listing and trading of cryptocurrencies and related financial activities.
The SCA will be tasked with providing regulatory oversight of regulated crypto activities. It will be up to this authority to grant the necessary licences.
The Dubai World Trade Center Authority, on the other hand, already provides a regulated ecosystem for companies seeking international opportunities, providing an ideal environment for startups.
Dubai’s free zones
Dubai is characterized by free zones with low taxation. The decision to establish these free zones was made in order to attract international investment. Each zone usually hosts specific business sectors.
Companies that choose to locate in the Dubai World Trade Centre locate themselves in the heart of the Arabian metropolis, where they can operate locally, with an eye to international growth.
DWTCA currently hosts 850 companies from 40 different sectors.
Dubai World Trade Center chooses the future
The management’s decision to become hospitable to crypto trading activities is part of its expansion plans aimed at innovation, in line with its national strategy.
Helal Saeed Almarri, director general of Dubai World Trade Centre Authority (DWTCA) and Dubai Department of Tourism and Commerce Marketing (DTCM), said:
“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 centralised 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, our globally recognised event in this sector, DWTCA is also pursuing ways to offer a sustainable home for this ecosystem, in order to stay future ready”.
Dubai, a new crypto hub
With this decision, opening a crypto trading business in Dubai could certainly prove advantageous, however, it is certainly not a law-free zone and indeed the SCA will be responsible for granting licences and, above all, for supervision.
Nevertheless, the free zone for crypto activities could make Dubai the beating heart of the sector. Dubai has not been insensitive to the allure of cryptocurrencies. In recent months it has hosted the AIBC Summit.
With this turn of events, Dubai aims to be not only a venue for events, but also a home for crypto trading activities.