Dubai has taken another step toward becoming a global hub for cryptocurrency industry when it inked an agreement with the UAE’s Securities and Commodities Authority (SCA) to trade crypto assets.
The agreement will support the trading of crypto assets in the Dubai World Trade Centre Authority
The oil-rich country has said that cryptocurrency will be integral to its ambitions to double its economy over the next decade.
The agreement creates a framework for the Dubai World Trade Centre Authority (DWTCA) to license and acquire approvals for all cryptocurrency-related activities in the free zone. This will include issuing, listing, licensing and trading crypto.
“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 free zone,” the acting chief executive of the SCA, Maryam Al Suwaidi, told local media.
The Gulf kingdom is hoping to leverage blockchain technology and cryptocurrencies in its quest to pursue a digital transformation.
At the moment, the UAE’s digital economy generates $27 billion and constitutes 4% of the country’s GDP. As more crypto companies base themselves in Dubai’s free zone, however, the emirate hopes to build a sustainable ecosystem for the industry’s growth and expansion and capitalize on the success of NFTs in global commerce.