The UAE Securities and Commodities Authority (SCA) and the Dubai World Trade Center Administration (DWTCA) have signed an agreement to support cryptocurrency trading and related services in the DWTCA free zone. Gulf News reported this.
Thus, SCA will oversee the issuance, offering, listing and trading of crypto assets. The agreement sets the framework. This allows the DWTCA to issue the necessary permits and licenses for financial activities related to digital assets.
“DWTCA expects to become a hub for the emerging ecosystem of new technologies”. Said Helal Saeed Al Marri, CEO of DWTCA and the Department of Tourism and Commerce Marketing (DTCM).
The development of its own digital currency
Recall that in July, the central bank of the UAE announced the development of its own digital currency in the Development Strategy for 2023-2026. The regulator intends to enter “the top ten central banks in the world”.
In addition to the launch of the CBDC, the document talks about digital transformation in the financial sector. Also about supporting the UAE’s efforts to form a green economy. Moreover, continue working on the development of innovative infrastructure to increase the competitiveness of the region.
In 2019, the UAE and Saudi Arabia announced cooperation in creating a new digital currency for cross-border payments. Furthermore, representatives of both countries discussed the draft of a joint comprehensive strategy. This includes initiatives in areas such as civil aviation and youth financial literacy.
Later, at the end of November 2020, the UAE and Saudi Arabia stated that the CBDC released as part of the Amber project showed the technical viability of the concept. The authors of the report noted its “significant superiority over centralized payment systems in the context of the stability of the architecture”.
The name of the project “Aber” in Arabic means a wanderer, someone who crosses borders as if they are not there. It also means an interpreter of dreams and visions. A very appropriate name for such a cross-border project, which is research and far-sighted.
The participants were two central banks and six commercial banks, three from each country. Three use cases of increasing complexity were tested.