Dubai: Dubai Airport Free Zone Authority (DAFZA) has signed an agreement with the Securities and Commodities Authority (SCA) to l support the regulation, offering, issuance, listing and trading of crypto assets within the free zone.
The agreement was signed by Dr. Maryam Al Suwaidi, Acting CEO of the Securities and Commodities Authority and Amna Lootah, Assistant Director-General, DAFZA.
The new agreement allows companies trading with crypto assets cryptocurrencies to be licensed within DAFZA as the SCA will be issuing the relevant approvals and licenses. Through this partnership, DAFZA has expanded its business licenses and commercial activities that will be integrated with the incentives and services the free zone provides. It will also provide a developed regulatory framework and flexible legislative environment that enhances the foreign investor experience.
In cooperation with DAFZA, the Securities and Commodities Authority oversees the offering, issuance, listing and trading of crypto assets and licensing related financial activities within the jurisdiction of DAFZA. The agreement also stipulates that the authority shall supervise, control, inspect and investigate entities operating in DAFZA and that have obtained a license or approval from the authority under this agreement.
The agreement will contribute to driving growth in the cryptocurrency sector and enhance the use of blockchain in the emirate of Dubai and the UAE, which will be an integral part of the UAE's blockchain strategy. Accordingly, the two parties will exchange best experiences, practices and technical support with the aim of enhancing the understanding of the current financial systems.
“The signing of the agreement confirms the two parties’ keenness to develop its cooperation in common areas of work, which contributes to achieving the objectives of the national agenda and the government's strategy to enhance economic growth,” said Al-Suwaidi.
The demand for cryptocurrencies and crypto assets is set to accelerate rapidly in the near future in the UAE and other GCC countries, as global trading volumes for crypto assets continue to soar. Cryptocurrencies have fuelled demand for real estate investments as early adopter investors who grew rich from digital currency look to diversify their assets.
"Cryptocurrencies and crypto assets have moved from the stage of showing interest to direct investment, which have got acceptance and investments from key global companies. This will require us to keep pace with this transformation and to follow the new economic era. The UAE and the emirate of Dubai have also confirmed its commitment to blockchain technology through several strategic plans and initiatives that highlights the importance of this sector," said Lootah.
The demand for cryptocurrencies and crypto assets is set to accelerate rapidly in the near future in the UAE and other GCC countries, as global trading volumes for crypto assets continue to soar. Cryptocurrencies have fuelled demand for real estate investments as early adopter investors who grew rich from digital currency look to diversify their assets.
