Dubai World Trade Centre Authority to start crypto assets trading

Dubai - The agreement establishes a framework that allows the DWTCA to issue the necessary approvals and licences for the conduct of financial activities relating to crypto assets.

Dubai World Trade Centre Authority (DWTCA) announced on Wednesday that it would support the regulation, offering, issuance, listing, and trading of crypto assets and related financial activities within its free zone as part of its drive towards innovation and digital-led economy.

The announcement on this initiative came in the wake of an agreement to this effect signed by the Securities and Commodities Authority (SCA) and the DWTCA. Under the agreement, the SCA will oversee, monitor, and inspect entities operating within DWTCA’s free zone.

In May, the Dubai Airport Free Zone Authority signed a similar agreement with the SCA. Dubai’s DMCC freezone opened a blockchain-based exchange for sugar trading last year and the Bitcoin Fund was listed on the Nasdaq Dubai exchange in June -- the first of its kind to trade in the region.

“The agreement establishes a framework that allows the DWTCA to issue the necessary approvals and licences for the conduct of financial activities relating to crypto assets,” the Dubai entity said in a statement.

Dr Maryam Al Suwaidi, acting chief executive officer of SCA, and Helal Saeed Almarri, director-general of the DWTCA and Dubai Department of Tourism and Commerce Marketing (DTCM), signed the agreement.

“The DWTCA has signed the agreement to expand its existing business licences, services and incentives. In collaboration with the DWTCA, the SCA will handle the regulatory oversight of the issuance, offering, listing, and trading of crypto assets as well as the licensing of the associated financial activities that fall under DWTCA’s jurisdiction,” said the statement.

Financial analysts said Dubai is well-positioned to benefit from the growing cryptocurrency market in the Middle East as its regulators lead a push toward acceptance of blockchain-based technologies. Dubai, the region’s financial hub and tax haven, has already taken several steps to bolster the use of blockchain within the city in recent months, and Stonberg expects Middle Eastern sovereign wealth funds to also make blockchain allocations.