Dafza, SCA sign agreement to support crypto assets trading

Dubai Airport Free Zone Authority (Dafza) has signed an agreement with the Securities and Commodities Authority (SCA) to support the regulation, offering, issuance, listing and trading of crypto assets within the free zone.

The agreement was signed by Dr Maryam Al Suwaidi, Acting CEO of the Securities and Commodities Authority and Amna Lootah, assistant director-general, Dafza. The new agreement allows companies trading with crypto assets cryptocurrencies to be licensed within Dafza as the SCA will be issuing the relevant approvals and licenses. Through this partnership, Dafza has expanded its business licenses and commercial activities that will be integrated with the incentives and services the free zone provides. It will also provide a developed regulatory framework and flexible legislative environment that enhances the foreign investor experience.

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In cooperation with Dafza, the SCA will oversee the offering, issuance, listing and trading of crypto assets and licensing related financial activities within the jurisdiction of Dafza. The agreement also stipulates that the authority shall supervise, control, inspect and investigate entities operating in Dafza and that have obtained a license or approval from the authority under this agreement.

The agreement will contribute to driving growth in the cryptocurrency sector and enhance the use of blockchain in the emirate of Dubai and the UAE, which will be an integral part of the UAE's blockchain strategy. Accordingly, the two parties will exchange best experiences, practices and technical support with the aim of enhancing the understanding of the current financial systems.

“The signing of the agreement confirms the two parties' keenness to develop its cooperation in common areas of work, which contributes to achieving the objectives of the national agenda and the government's strategy to enhance economic growth. Under the directives of Abdullah bin Touq, Minister of Economy and Chairman of the Board of Directors of the Securities and Commodities Authority, we aim to strengthen our collaborations and exchange experiences and knowledge with various government entities, agencies and institutions, and work as a team to achieve our common goals,” said Al Suwaidi.

“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 a 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. This initiative supports both entities to achieve its strategic and organizational goals. It aims to exchange technical support in order to enhance the ability of the two parties to mutual understanding and familiarity with the financial systems both entities use,” Al Suwaidi added.

The demand for cryptocurrencies and crypto assets is set to accelerate rapidly in the near future in the UAE and other GCC countries, as global trading volumes for crypto assets continue to soar. Cryptocurrencies have fuelled demand for real estate investments as early adopter investors who grew rich from digital currency look to diversify their assets.

Dafza is continuously working to attract foreign investors through expanding the scope of its licenses and services. The free zone has more than 25 years of high confidence and trust within the international business community, which is looking to establish or expand its business and commercial activities in Dafza. Cryptocurrencies and crypto assets have moved from the stage of showing interest to direct investment, which have got acceptance and investments from key global companies.

Lootah said: “The UAE and the emirate of Dubai have also confirmed its commitment to blockchain technology through several strategic plans and initiatives that highlights the importance of this sector. The agreement with the SCA will lay the foundations for our future partnership and will support the establishment of the system and the necessary workflow stages for trading encrypted digital assets in Dafza. It will also support and enhance business operations and transactions in the Emirate of Dubai,” added Lootah.

- business@khaleejtimes.com