DAFZA, SCA sign agreement to support crypto trading

Dubai Airport Free Zone Authority (DAFZA) and Securities Commodity Authority (SCA) signed an agreement on Wednesday, 19th May to support Crypto Trading. The agreement was signed by Dr. Maryam Al Suwaidi, Acting CEO of SCA, and Amna Lootah, Assistant Director-General of DAFZA. As a result of the agreement, SCA will support the regulation, offering, issuance, listing, and trading of crypto assets within the Free Zone.

Shortly, the demand for cryptocurrencies and crypto-assets is going to increase rapidly. Especially, in the UAE and other GCC countries. Moreover, the UAE’s Blockchain Strategy 2021 has a target to conduct all the government transactions using blockchain technology by 2021. This move by DAFZA is in line with the blockchain strategy.

The agreement approves licensing of cryptocurrency and crypto-assets trading in DAFZA. SCA is the authority that issues approvals and licenses. Besides, it will oversee, supervise, control, inspect, and investigate the companies operating in DAFZA that have got license under this agreement.

DAFZA, related to the Airport business is getting into the booming crypto sector. This agreement is a step to attract foreign investors by expanding the scope of the business activities and licenses in DAFZA. Also integrating them with the incentives and services of the Free Zone.

DAFZA and SCA, by signing the agreement, are set to share the best practices and technical support to enhance the understanding of the current financial system. They are also all set to provide a developed regulatory framework and flexible legislative environment that enhances foreign investor experience.

Dr. Maryam 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.”

Amna Lootah said: “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.”

Crypto Currency and Dubai

Dubai has always welcomed new and innovative ideas. Innovation bound SMEs, use of digital money as a payment method, are some of them. Dubai allows the opening of cryptocurrency companies after the acceptance of Blockchain Strategy 2021 and enabling of a Regulatory Framework for Stored Value and Electric Payment System.

Similarly, DMCC had also opened a new crypto center, earlier this year to support crypto trading. All these are highlighting the efforts and measures of Dubai Authorities to accomplish the Blockchain Strategy 2021.

A cryptocurrency is a digital currency that can be used to buy goods and services. However, it uses an online ledger with strong cryptography to secure online transactions. Blockchain is such a technology. The Blockchain Strategy was launched by Dubai government in 2018. Blockchain technology uses innovative technologies to assist ease of doing business and increase wealth. The Dubai government aims to put half of the government transactions on blockchain thus improving efficiency.

Conclusion

In short, Dubai Airport Free Zone Authority (DAFZA) is a dynamic business hub. It connects Europe, the Indian subcontinent , and Eastern countries due to its strategic location. DAFZA has around 1800 companies benefiting the world-class facilities and Free Zone incentives. It was established in 1996 in Dubai and today it is one of the fastest-growing Free Zone in the region. On the other hand, SCA has the task of regulating the UAE financial market including Dubai Financial Market (DFM), Abu Dhabi Securities Exchange (ADX), Dubai Gold & Commodities Exchange (DGCX). The signing of the agreement by DAFZA and has brought Dubai closer to the achievement of the Blockchain strategy 2021. Cryptocurrency sector is booming. Therefore, crypto trading companies are sure to reap profits by investing in DAFZA.

Beyond View will assist you in opening a crypto trading company in DAFZA. We will provide all support and guidance in the successful incorporation and running of the company.