Dubai Multi Commodies Centre (DMCC), the commodities trade and enterprise free zone, announced on Saturday that it is to establish a regulatory framework for businesses offering, issuing, listing, and trading crypto assets.
DMCC said it has entered into a memorandum of understanding (MoU) with the Securities and Commodities Authority (SCA) which will see businesses dealing with crypto assets gain access to bespoke licences.
Working closely with DMCC’s onboarding teams, the SCA will issue approvals for crypto-related businesses looking to set up in the free zone, it said in a statement.
It added that the SCA will subsequently regulate the crypto activities in line with its policies that were introduced in October to develop an integrated ecosystem for the crypto and blockchain industries.
The agreement aims to foster growth within the sector and promote the development of blockchain applications in Dubai.
Ahmed bin Sulayem, executive chairman and CEO of DMCC, said: “Through this agreement with the SCA, DMCC is expanding its current range of crypto assets licences, which perfectly complement the existing business licence options. In early 2020, we signed an agreement with CV VC and CV Labs, a Swiss Government-supported initiative that will bring the world’s leading blockchain and cryptographic technologies’ ecosystem to Dubai.
“This agreement also builds the foundation for our future partnerships in the crypto space and is a major step in the launch of the DMCC Crypto Centre, which we will bring to the market in the near future.
“As we continue to make strides within the crypto and blockchain space, DMCC is making it easier for crypto and blockchain businesses to set up and operate in Dubai… By working with SCA, we are able to extend the centralised supervision of the crypto market to our business district in the heart of Dubai, bolstering its standing as a hub for crypto assets.”
He added that the latest agreement builds on DMCC’s strategies to promote technology-driven trade and to attract innovative companies to Dubai.
In 2020, DMCC launched DigitalSugar, a blockchain-enabled trading platform for sugar, and the Agriota e-Marketplace, an agri-commodity trading and sourcing platform that uses blockchain to help bridge the gap between millions of rural farmers in India and the UAE’s food industry.
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