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Dubai Airport Free Zone Authority (DAFZA) has signed an agreement with the Securities and Commodities Authority (SCA) that allows companies trading with cryptocurrencies to be licensed within the free zone.
The new agreement between DAFZA and SCA will support the regulation, offering, issuance, listing and trading of crypto assets within the free zone, the free zone operator said in a statement.
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 UAE's blockchain strategy, the statement said.
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. The country’s UAE Blockchain Strategy 2021 has set a target of conducting at least half of all government transactions using blockchain technology by 2021.
Earlier this year, the Dubai Mina Rashid based KIKLABB free trade zone became the first state-owned licensing entity in the UAE to allow cryptocurrency when it said customers could now pay for trade licenses and visa fees by Bitcoin, Ethereum, or Tether.
(Writing by Brinda Darasha; editing by Seban Scaria)
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