The Securities and Commodities Authority (SCA) of the United Arab Emirates has reached an agreement with the Dubai World Trade Centre Authority (DWTCA) to encourage and promote crypto asset trading for promoting Cryptocurrency Investment in UAE.
The agreement would see the DWTCA work toward proper regulation of the crypto assets market, according to a statement made by the SCA on September 22. According to the securities agency, the Dubai authority will have supervisory jurisdiction over the "offering, issue, and listing" of cryptocurrencies within its free zone.
In its everyday operations involving crypto assets, including the issuing of licences to financial institutions wanting to offer crypto asset services, the DWTCA is now expected to follow a set of rules.
The SCA, for its part, will continue to monitor and oversee the country's financial markets. This involves providing proper investment protection and inspecting all providers operating within Dubai's free zone.
The agreement comes as the UAE portrays itself as one of the fastest-growing crypto adoption locations, enhancing Dubai's appeal as a global commerce and financial hub.
The collaboration between the Dubai body and the country's markets regulator, according to DWTCA director-general Helal Saeed Almarri, contributes to the city's overall development as an innovation centre.
He also stated that the arrangement is in line with the Emirates Blockchain Strategy, which aims to make the UAE a global hub for blockchain research. He also cited the growing popularity of non-fungible tokens (NFTs) as a major attraction for investors.