The adoption of crypto in the Middle East is higher than it has ever been. And regulatory frameworks to support crypto-related financial services are multiplying.
The United Arab Emirates’ Securities and Commodities Authority has signed an agreement with the Dubai World Trade Center Authority (DWTCA). This agreement aims to support the regulation and trading of cryptocurrencies in the DWTCA Free Economic Zone. UAE News Agency (WAM) reported this Wednesday.
The agreement establishes a framework that allows the DWTCA to issue the necessary approvals and licenses for the conduct of financial activities related to cryptocurrencies.
As part of the deal, SCA will also oversee major crypto-related activities. These include overseeing the issuance, offering, listing and trading of cryptocurrencies. As well as the authorization of associated financial activities which fall under the competence of the DWTCA. SCA interim CEO Dr Maryam Al Suwaidi and DWTCA and Dubai Tourism and Business Marketing Department (DTCM) Managing Director Helal Saeed Al Marri signed the agreement.
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Dr Al Suwaidi said, “The SCA will be responsible for the regulatory oversight of the offering, issuance, trading and listing of crypto assets and for the licensing of financial activities that occur. relate to it within the limits of the DWTCA free zone. The SCA will also supervise, control and investigate authorized entities operating in the free zone. “
The DWTCA chief executive said he was determined to expand its services as a free choice area for the international community of investors and entrepreneurs. It also seeks to support businesses based on blockchain and crypto technologies.
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“With the rise of new technologies such as non-fungible tokens expected to play an important role in the future of commerce, and building on the Future Blockchain Summit, our globally recognized event in this industry, DWTCA is also seeking ways to provide a sustainable home for this ecosystem, in order to stay ready for the future, ”he added. He concluded by saying that the UAE is at the forefront of blockchain research and implementation. And therefore, the ambition of the Authority is in line with the Emirates Blockchain strategy.
UAE crypto adoption
With the aim of becoming a pioneer in blockchain technology, the UAE has launched the UAE Blockchain Strategy 2021. Subsequently, 50% of government transactions will be carried out using blockchain technology by 2021. To achieve this, regulations on the use of crypto assets, including cryptocurrencies, have recently been issued. Jurisdictions like the Abu Dhabi Global Market (ADGM) and the Dubai International Financial Center (DIFC) have crypto regulations in place.
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In June, the local exchange, Nasdaq Dubai, listed a public Bitcoin fund of Canadian digital asset investment fund manager 3iQ. It was the first listed cryptocurrency fund in the Middle East. With the intervention of international organizations, virtual currency and blockchain technology will soon enter consumer transactions. UAE institutional investors and wealth managers plan to increase their exposure to cryptocurrency assets by 2023, according to a survey.
Featured image from Arabian Business, Chart from TradingView.com