The agreement allows Dubai World Trade Centre Authority (DWTCA) to grant permissions and licences to crypto trading providers
UAE's Securities and Commodities Authority (SCA) has entered into an agreement with the Dubai World Trade Centre Authority (DWTCA) in a deal that will see the latter support and promote the trading of crypto assets.
According to a statement the SCA released on 22 September, the agreement will see the DWTCA work towards proper regulation of the crypto assets market. The Dubai authority will also have the oversight power regarding the "offering, issuance, listing" of cryptocurrencies within its free zone, the securities agency said in the statement.
The DWTCA is now expected to work within an established framework in its daily operations regarding crypto assets, including in the issuance of licences to financial companies seeking to offer crypto asset services.
On its part, the SCA will monitor and continue to regulate the financial markets in the country. This includes ensuring there's adequate protection to investors as well as inspecting all providers within Dubai's free zone.
The arrangement comes as the UAE positions itself as one of the fastest-growing destinations of crypto adoption, to add to the appeal of Dubai as a global trade and financial magnet.
DWTCA director-general Helal Saeed Almarri noted in a statement that the collaboration between the Dubai body and the country's markets regulator, adds to the overall development of making the city an innovation hub.
He added that the agreement also aligns with the Emirates Blockchain Strategy as the UAE becomes a global destination for blockchain research. He also pointed to the growth in the non-fungible tokens (NFTs) space as a key attraction to investors.