Earlier this week, the financial regulators in the United Arab Emirates have signed an agreement that supports the trading of crypto assets within its jurisdiction. These regulators were UAE’s Securities and Commodities AUTHORITY (SCA) and Dubai World Trade Centre Authority (DWTCA).
The heads of the two regulatory bodies signed the agreement. This included both Dr. Maryam Al Suwaidi who is the Acting CEO of SCA, and Helal Saeed Al Marri who is the Director-General of DWTCA.
According to Dr. Al Suwaidi, the agreement between both bodies is a product of the need for collaboration for each of them to do its job effectively. Talking from a commercial perspective, Al Marri said the DWTCA needed to achieve this in order to broaden its scope and regulate businesses that have blockchain underpinnings.
He went further to say, “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 recognised event in this sector, DWTCA is also pursuing ways to offer a sustainable home for this ecosystem, in order to stay future ready.”
This agreement has empowered DWTCA to approve and issue licenses for qualified entities that want to offer crypto asset services in the United Arab Emirates. On the other hand, the agreement has also give the SCA to expand the scope of the licences it issues to include crypto-related ones.
Working together, both SCA and DWTCA would serve as regulatory watchdogs for “issuance, offering, listing, and trading of crypto assets”.
Read more: UAE To Have A CBDC Between 2023-2026.