As of now, the crypto trading adoption in the Middle East is higher than it has ever been before and that’s not all. And right now, the regulatory system is in its process to support crypto-related financial services and it’s growing day by day.
Very recently, the UAE’s Securities and Commodities Authority has proceeded to sign an agreement with the DWTCA also known as Dubai World Trade Center Authority. Now, the agreement has some simple goals which are to solely support the regulation and trading of cryptocurrencies in the DWTCA’s economic-free zone and that’s not all.
The agreement has already managed to establish a system that allows the DWTCA to issue any important approvals or licenses for the conduct along with regulating financial activities relating to cryptocurrencies,
The agreement however will enable SCA to oversee major crypto-related activities in their reach and that’s not all. The activities they’ll be able to oversee include supervising the issuance, offering, listing, and trading of cryptocurrencies. It’ll also allow licensing of the associated financial activities that directly share DWTCA’s jurisdiction. The agreement was signed by the acting CEO of SCA Dr. Maryam Al Suwaidi and Director-General of the DWTCA and Dubai Department of Tourism and Commerce Marketing (DTCM), Helal Saeed Al-Marri.
Dr. Al Suwaidi stated, “The SCA will be responsible for the regulatory supervision of offering, issuing, trading, and listing crypto assets and the licensing of financial activities related to them within the limits of the DWTCA free zone. The SCA will also supervise, control, and investigate the licensed entities that operate within the free zone.”
The Director-General of the DWTCA said, “it is committed to expanding its services as a free zone of choice for the international investment and entrepreneurial community. It is also looking to support businesses underpinned by blockchain and cryptographic technologies.”
“With the rise of new technologies such as non-fungible tokens set to play an important role in the future of commerce and building on the Future Blockchain Summit, our globally-recognized event in this sector, DWTCA is also pursuing ways to offer a sustainable home for this ecosystem, in order to stay future-ready. The UAE has been at the forefront of blockchain research and implementation. And therefore, the Authority’s ambition is in line with the Emirates Blockchain Strategy.”
The UAE has managed to launch the UAE Blockchain Strategy 2021 in a bid of becoming the first pioneer in blockchain technology in the region. Hence, half of the government exchanges will be directed through blockchain innovation by the end of this year. To accomplish this, guidelines on the usage of crypto resources, including cryptocurrencies, have as of late been given. Having Jurisdictions like Abu Dhabi Global Market (ADGM) and Dubai International Financial Center (DIFC) have come out with crypto guidelines.
Back in June this year, NASDAQ Dubai which is the local stock exchange has listed a public Bitcoin fund by 3iQ which is a Canadian digital asset investment fund manager. This was the first time the Middle East listed cryptocurrency as a funding source and that’s not even all. International organizations are stepping in to support cryptocurrency since both virtual currency and blockchain technology are about to enter mainstream transaction methods. And institutional investors along with wealth managers in the UAE are already planning to enhance their interests and exposure to cryptocurrency-based finance between now and 2023 and it comes directly from a survey.