The Securities and Commodities Authority (SCA) and the Dubai World Trade Centre Authority (DWTCA) have signed an agreement to assist the regulation, offering, issuance, listing, and trading of crypto assets, as well as associated financial operations, within the free zone of the DWTCA.
The agreement creates a framework for DWTCA to grant the required permissions and licences for the conduct of financial transactions using crypto assets. H.E. Dr. Maryam Al Suwaidi, SCA’s Acting CEO, and H.E. Helal Saeed Almarri, Director General of the Dubai World Trade Centre Authority (DWTCA) and Dubai Department of Tourism and Commerce Marketing, signed the agreement (DTCM).
The Dubai World Trade Centre Authority offers a unique and well-regulated ecosystem for businesses looking for local and international opportunities, while the DWTCA Free Zone is an ideal environment for startups, SMEs, and corporations looking to operate locally while reaching out to international markets.
The SCA, which is in charge of monitoring and regulating the UAE’s financial markets, aspires to create a sustainable investment environment, protect investors’ rights, encourage sound practices, and attract capital through innovative technologies.
The DWTCA has agreed to expand its existing business licenses, services, and incentives under the terms of the agreement. SCA will oversee the regulatory control of the issue, offering, listing, and trading of crypto assets, as well as the licensing of the related financial activities that fall under DWTCA’s free zone.
Under the terms of the agreement, SCA will be in charge of overseeing, monitoring, and inspecting organisations operating within the DWTCA’s scope. Following the signing, H.E. Dr. Al Suwaidi said, “The agreement comes in response to directives from H.E. Abdulla bin Touq Al Marri, Minister of Economy and SCA Board Chairman, to enhance cooperation and exchange knowledge and expertise with various government departments, authorities, and institutions to work collaboratively and achieve common goals.”
HE Dr. Al Suwaidi also noted that, “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 SCA will also supervise, control and investigate the licensed entities that operate within the free zone.”
His Excellency Helal Saeed Almarri, Director General of Dubai World Trade Centre Authority (DWTCA) and Dubai Department of Tourism and Commerce Marketing (DTCM), said, “The Dubai World Trade Centre Authority is committed to expanding its services as a free zone of choice for the international investment and entrepreneurial community. As Dubai continues its drive towards an innovation and digital-led economy, DWTCA is looking to support businesses underpinned by blockchain and cryptographic technologies. Our agreement with the Securities and Commodities Authority will allow DWTCA to broaden its regulatory, licenses and services capabilities, in addition to extending the centralised supervision of the crypto market to our free zone.”
“With the rise of new technologies such as non-fungible tokens set to play an important role in the future of commerce, and building on the Future Blockchain Summit, our globally recognised event in this sector, DWTCA is also pursuing ways to offer a sustainable home for this ecosystem, in order to stay future ready,” he further stated.
Also noted, “The UAE has been at the forefront of blockchain research and implementation and our ambition is in line with the Emirates Blockchain Strategy”, he concluded.
The SCA and the DWTCA will share project best practises and provide mutual technical support to improve their understanding of both organisations’ finance systems. Professional services will be provided as part of the collaboration, outlining both parties’ responsibilities and obligations.