The UAE’s economic authorities have legalized cryptocurrency trading and transactions, as well as their backing, in the Dubai Free Zone.
SCA Deputy Director Al Suwaidi and DWTCA CEO Helal Said Almarri of the United Arab Emirates signed an agreement to regulate trade in a new asset class in the FTZ. The groups will provide a clear framework to allow the DWTCA to license cryptocurrency activity and grant appropriate privileges to diverse businesses. SCA will also be able to handle the most common sorts of crypto asset transactions, including token issuance, listing, selling, buying, and licensing.
According to Al Suwaidi, the proposal fits DWTCA’s aim of expanding the spectrum of services available in FTZs and introducing cutting-edge technical solutions like cryptocurrency. As Dubai’s economy becomes more digital, more businesses are incorporating blockchain and crypto-based product support. As a result, the agreement supports the UAE’s goal of becoming a welcoming worldwide hub for digital currencies. When it comes to new technical solutions, Almarri brings up NFT, claiming that it will play a key part in the future of trade in the UAE.
Local officials signed a similar agreement in the DAFZA to expand the crypto business. In addition, the UAE Minister of Economics declared in April this year that asset tokenization will be a significant trend in the country’s aim to increase its economy over the next decade.