There could be a new cryptocurrency hub in the Middle East thanks to the United Arab Emirates (UAE). UAE’s Securities and Commodities Authority (SCA) wants to support both regulations and cryptocurrency trading in the Dubai World Trade Center Authority’s (DWTCA) economic zone. The information was released in a recent report and it could have a strong positive impact on the entire cryptocurrency market.
UAE Wants to Support Crypto Trading and Regulations
As per the agreement, the goal is to generate the necessary regulatory ecosystem to allow DWTCA to approve different financial activities related to virtual currencies. This would also let the regulatory authority approve and issue different licenses.
In addition, the SCA is also working in order to supervise the new issuance of digital currencies by different companies. This would be very important in terms of understanding which are regulated companies and tokens and which of them are not.
The current CEO of SCA Dr. Maryam Al Suwaidi explained that the SCA will be responsible for the entire regulatory framework in the economic area. Furthermore, they would also be controlling and investigating the companies that would work in the economic zone.
On the matter, Dr. Maryam Al Suwaidi said:
“The SCA will be responsible for the regulatory supervision of offering, issuing, trading, and listing crypto assets and the licensing of financial activities related to them within the limits of the DWTCA free zone. The SCA will also supervise, control, and investigate the licensed entities that operate within the free zone.”
This would let companies from all over the world find a regulated environment where to operate and start planning their regional and global expansion. This is similar to what other countries and jurisdictions are currently doing. The Swiss city of Zug is also one of the crypto hubs that continues to expand.
Moreover, Malta became a very strong jurisdiction in terms of solutions offered to the European Union. In Malta, companies such as Binance are able to get access to the large European market. Instead, the Belarusian proposal to create a crypto hub seems to be a project threatened by local geopolitical conflicts.
It is also worth taking into account that Nasdaq Dubai started offering investors the possibility to invest in a publicly listed Bitcoin fund created by the fund manager 3iQ in Canada. This shows that the region is certainly moving towards better regulations for virtual currencies and strong support for Bitcoin (BTC).