Picture used for illustrative purpose.

Dubai Airport Free Zone Authority (DAFZA) has signed an agreement with the Securities and Commodities Authority (SCA) to 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 SCA, and Amna Lootah, Assistant Director-General, DAFZA.

The new agreement allows companies trading with crypto assets cryptocurrencies to be licensed within DAFZA, as SCA will be 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.

In cooperation with DAFZA, 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 licence or approval from the authority under this agreement.

The agreement will contribute to driving 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. Accordingly, the two parties will exchange best experiences, practices and technical support with the aim of enhancing the understanding of the current financial systems.

Dr Al Suwaidi said that “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. It also provides a reliable and timely support to each party regarding any matters falling within the scope of this agreement and sharing the best practices of relevant markets. This initiative supports both entities to achieve its strategic and organisational goals,” she added.

Amna Lootah said, “DAFZA is continuously working to attract foreign investors through expanding the scope of its licences 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.”

In March 2021, DMCC – the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprise – has entered into a memorandum of understanding (MoU) with the Securities and Commodities Authority (SCA) to establish a regulatory framework for businesses offering, issuing, listing, and trading crypto assets in DMCC.

The agreement will see businesses dealing with crypto assets gain access to bespoke licences offered by the DMCC Crypto Centre, first-class customer service, a range of incentives, and the strong business regulatory framework developed by DMCC.