Dubai is taking another step to embrace cryptocurrencies thanks to a new agreement between the Dubai Airport Free Zone Authority and United Arab Emirates’ Securities and Commodities Authority, or SCA.
In a move to grow the crypto industry within the region, DAFZA will now allow cryptocurrency trading under an established regulation. As the financial markets supervisor across the UAE, the SCA will oversee the offering, issuance, listing and trading of crypto assets within the free zone. The SCA will also handle all necessary approvals and licensing for companies regarding crypto trading.
Signed by SCA acting CEO Maryam Al Suwaidi and DAFZA assistant director-general Amna Lootah, this partnership enables DAFZA to expand its business licenses and commercial activities within the free zone, local media reports.
Noting that the partnership will enable the two parties to contribute to achieving UAE’s national plans more effectively, Al Suwaidi shared more details about the agreement:
“The terms included in the agreement are set to establish a strategic partnership, which allows the provision of distinguished professional services while specifying the responsibilities and obligations of each of the two parties. It also provides reliable and timely support to each party regarding any matters falling within the scope of this agreement and sharing the best practices of relevant markets.”
Amna Lootah said that by expanding the licenses and services it provides, DAFZA will continue to attract foreign investors.
The Dubai Financial Services Authority, or DFSA, plans to introduce a cryptocurrency regulation this year. The DFSA even called for public feedback on the proposed crypto laws in March. According to DFSA chief executive Brian Stirewalt, Dubai aims to balance regulatory oversight and promote innovation in the digital asset space.