Dubai Airport Free Zone Authority (DAFZA) has signed an agreement with the Securities and Commodities Authority (SCA) that will 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 agreement allows companies trading with crypto assets to be licensed within DAFZA, with the SCA 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.
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 move is expected to drive 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 country’s blockchain strategy.
Dr Al Suwaidi said: “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.
“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.”
Amna Lootah added: “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.”
The demand for cryptocurrencies and crypto assets is set to accelerate rapidly in the near future in the UAE and other GCC countries. Cryptocurrencies have fuelled demand for real estate investments, as early adopter investors, who grew rich from digital currency, look to diversify their assets.
