The financial regulators of the United Arab Emirates have reached an agreement to officially allow and support cryptocurrency transactions in the Dubai Free Economic Zone.
Dubai World Trade Center Authority (DWTCA) Announce On Wednesday, it signed an agreement with the UAE Securities and Commodities Authority (SCA) to support the regulation and trading of crypto assets in the DWTCA free zone.
The new initiative establishes a framework that enables DWTCA to issue the necessary approvals and licenses for financial activities related to cryptocurrencies. As part of the agreement, SCA will also oversee major crypto-related activities such as issuance, listing, trading, and licensing processes.
According to the announcement, the agreement was signed by Maryam Al Suwaidi, Acting Chief Executive Officer of SCA, Helal Saeed Al Marri, Director General of DWTCA, and an executive from the Dubai Tourism and Commercial Marketing Department.
Al Suwaidi stated that the new project is in line with DWTCA’s commitment to expand its services as a free zone and support new technologies such as irreplaceable tokens. “As Dubai continues to promote innovation and the digital economy, DWTCA is seeking to support businesses based on blockchain and encryption technology,” he added.
DWTCA and SCA did not immediately respond to Cointelegraph’s request for comment.Before the authorities Signed a similar agreement In May, the Dubai Airport Free Zone Authority stimulated the development of the crypto industry.
The new agreement further strengthens the UAE’s growing commitment to become a cryptocurrency-friendly global hub.
In April, Minister of Economy Abdulla Bin Touq Al Marri announced that cryptocurrency and asset tokenization will become The key to the country’s plan to double its economy within 10 years. The local stock exchange, Nasdaq Dubai, then listed A public bitcoin (Bitcoin) In June, it was invested by 3iQ, a Canadian digital asset investment fund manager.