The Dubai MultiCommodities Centre (DMCC), a free zone dedicated to commodities trade and enterprise, will establish a regulatory framework for businesses offering, issuing, listing, and trading crypto assets.
Image retrieved from the DMCC website
A memorandum of understanding (MoU) was signed by the Securities and Commodities Authority (SCA), which will see businesses dealing with crypto assets gain access to bespoke licences offered by the DMCC Crypto Centre.
Working closely with DMCC's onboarding teams, the SCA will issue approvals for crypto-related businesses looking to set up in the free zone.
The SCA will subsequently regulate the crypto activities in line with its policies that were introduced in October 2020. The agreement will foster growth within the sector and promote the development of blockchain applications in Dubai.
“Through this agreement with the SCA, the DMCC is expanding its current range of crypto assets licences, which perfectly complement the existing business licence options," said Ahmed bin Sulayem, Executive Chairman and Chief Executive Officer of DMCC.
"In early 2020, we signed an agreement with CV VC and CV Labs, a Swiss Government-supported initiative that will bring the world's leading blockchain and cryptographic technologies' ecosystem to Dubai. This agreement also builds the foundation for our future partnerships in the crypto space and is a major step in the launch of the DMCC Crypto Centre, which we will bring to the market in the near future.
“As we continue to make strides within the crypto and blockchain space, the DMCC is making it easier for crypto and blockchain businesses to set up and operate in Dubai. By working with the SCA, we are able to extend the centralised supervision of the crypto market to our business district in the heart of Dubai, bolstering its standing as a hub for crypto assets,” he added.
waheedabbas@khaleejtimes.com