The UAE Securities and Commodities Authority (SCA) has signed an agreement with the Dubai World Trade Centre Authority (DWTCA) to support trading of crypto assets and related financial activities within DWTCA’s free zone.
The Securities and Commodities Authority (SCA) and the Dubai World Trade Centre Authority (DWTCA) have entered into an agreement supporting the regulation, offering, issuance, listing and trading of crypto assets within DWTCA’s free zone pic.twitter.com/Yh2l8RvZ8U— Bloqport (@Bloqport) September 22, 2021
The agreement will allow DWTCA to issue the approvals and licenses for financial activities related to crypto assets. SCA will oversee, monitor, and inspect entities operating within DWTCA’s free zone.
In May, the Dubai Airport Free Zone Authority inked a similar agreement with the SCA. Dubai’s DMCC free zone opened a blockchain-based exchange for sugar trading last year and the Bitcoin Fund was listed on the Nasdaq Dubai exchange in June -- the first of its kind to trade in the region.
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 provides a well-regulated ecosystem for businesses and companies seeking local and international opportunities, while its free zone creates an environment for startups, SMEs and corporations that allow them to operate locally while reaching global markets.
“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.” - Dr. Maryam Al Suwaidi, acting chief executive officer of SCA.
According to the statement, the SCA and DWTCA also plan to exchange best practices relating to the project, as well as deliver mutual technical support to enhance understanding of both organisations’ financial systems. The partnership will also include the provision of professional services that specify the responsibilities and obligations of both parties.
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