Dubai Airport Free Zone Authority (DAFZA) and United Arab Emirates’ Securities and Commodities Authority (SCA) have announced that they are aiming to attract foreign crypto investors.
It has been reported that DAFZA will allow cryptocurrency trading under an established regulation. As the financial markets supervisor across the UAE, the SCA will oversee the offering, issuance, listing, and trading of crypto assets within the free zone. The SCA will also handle all necessary approvals and licensing for companies regarding crypto trading.
However, the partnership, as signed by SCA Acting CEO Maryam Al Suwaidi and DAFZA Assistant Director-General Amna Lootah, enables DAFZA to expand its business licenses and commercial activities within the free zone.
Dubai is bullish on crypto and #blockchain. A new agreement will now allow cryptocurrency trading under an established regulation. https://t.co/9a0QrhRXSj — Cointelegraph (@Cointelegraph) May 21, 2021
The report said that the partnership will enable the two parties to contribute to achieving the UAE’s national plans more effectively.
Al Suwaidi said:
“The terms included in the agreement are set to establish a strategic partnership, which allows the provision of distinguished professional services while specifying the responsibilities and obligations of each of the two parties. It also provides reliable and timely support to each party regarding any matters falling within the scope of this agreement and sharing the best practices of relevant markets.”
Likewise, Lootah said that by expanding the licenses and services it provides, DAFZA will continue to attract foreign investors. The UAE, particularly Dubai, is known for its welcoming stance on crypto and blockchain. Dubai facilitates regulatory bodies to promote and encourage the adoption of blockchain.
DFSA plans to introduce cryptocurrency regulation this year. The DFSA even called for public feedback on the proposed crypto laws in March.
Thus, Brian Stirewalt, the Chief Executive of DFSA, said that Dubai aims to balance regulatory oversight and promote innovation in the digital asset space.