The UAE’s Securities and Commodities Authority (“SCA”) signs an
agreement with the Dubai World Trade Centre Authority (“DWTCA”) allowing
for crypto trading within the free zone.
Introduction
According to a statement made by the SCA issued on the 22nd of September, the SCA and
DWTCA have signed an agreement allowing for the conduct of financial activities concerning
crypto assets within the Dubai World Trade Centre Free Zone (“Agreement”).
The Agreement
The Agreement sets out the regulatory framework for the trading of crypto within the Dubai World
Trade Centre Free Zone (“DWTC-FZ”). DWTCA will issue the approvals and licenses for the
conduct of crypto asset-related financial activities, while the SCA will be responsible for
overseeing the regulation of the licensing.
In addition to that, the SCA shall manage the regulation of the issuing, offering, listing and trading
of crypto assets within the DWTC-FZ. Accordingly, the SCA shall also be responsible for
overseeing, monitoring and inspecting entities operating in DWTC-FZ and shall conduct
investigations if required.
With the SCA’s and DWTCA’s responsibilities set out, both are expected to exchange best
practices and mutually deliver technical support.
Crypto in the UAE
With a growing demand for crypto-related assets, various free zones in the UAE have recently
been attracting blockchain and crypto-related businesses. One example is the Dubai Airport Free
Zone (“DAFZA”) who, like the DWTCA, was granted regulatory approval by the SCA to trade
crypto assets early 2021. Another is the Dubai Multi Commodities Centre (“DMCC”) who recently
launched their Crypto Centre specialised for businesses underpinned by crypto and blockchain
technology.
These advancements can be seen to align with the Emirates Blockchain Strategy, which is the
UAE’s strategy to transform 50% of governmental transactions to use blockchain technology.
Based on the above, it is likely that the Agreement between the SCA and DWTCA is yet another
stride towards UAE’s ambition to become an innovation and digital-led economy.
Disclaimer
This article is for informational purposes only and shall not be considered as legal advice or
opinion.
