UAE’s Regulator Supports Crypto Asset Trading in Free Zone

The UAE’s regulator — Securities and Commodities Authority (SCA) signed an accord with the Dubai World Trade Centre Authority (DWTCA). This deal states that the regulator will support crypto asset trading within the DWTCA’s free zone.

According to Maryam Al Suwaidi, the acting chief executive of the SCA, the DWTCA can now issue approvals and licenses for crypto-related activities. Specifically, for the finance crypto-related activities.  

Meanwhile, the SCA will support the DWTCA by inspecting those licensed within the free zone. If needed, the SCA will also conduct investigations where necessary. Director-General of the DWTCA — Helal Saeed Almarri, says

Our agreement with the Securities and Commodities Authority will allow [the] DWTCA to broaden its regulatory, licenses, and services capabilities, in addition to extending the centralized supervision of the crypto market to our free zone.

To emphasize, the SCA is responsible for regulating and monitoring the UAE’s financial markets. Thus, it is working to build a sustainable investment ecosystem to protect investor rights. It is also elevating good practices by creating a framework that will attract capital with the presence of innovative technology and strategy.

Accordingly, blockchain and cryptographic technology is a good option to deliver these goals. The DWTCA is helping such tech companies set up their operation in the free zone to match the SCA’s vision for the UAE. All this will contribute towards a futuristic digital economy.

Presently, the digital economy in the region makes $27.25 billion (AED 100 billion). This makes up about 4.3% of the country’s gross domestic product. The UAE is home to over 1,400 start-ups. No doubt, the potential for a digital economic boom is highly possible.

Besides, the UAE is taking many measures to accommodate blockchain and cryptos within its borders. For instance, the country is using blockchain-based KYC. In fact, the KYC blockchain platform was just updated a few months ago. On the horizon, many crypto and blockchain events such as the Crypto Expo Dubai 2021 are set to take place in many parts of the UAE.

Source: https://coinquora.com/uaes-regulator-supports-crypto-asset-trading-in-free-zone/