The Dubai World Trade Centre Authority (DWTCA) announced its decision to support the trading of crypto assets and related financial activities within DWTCA’s free zone.
This approval is major news for businesses that are looking to implement cryptographic technologies in the Emirates. Benefits to the UAE crypto trading will include the increase of international investment and a strengthening of entrepreneurial communities. Most notably, this decision will also aid the UAE’s desire to shift to a more digital-led economy.
The following statement was released from the DWTCA official press release:
The Dubai World Trade Centre Authority is committed to expanding its services as a free zone of choice for the international investment and entrepreneurial community. As Dubai continues its drive towards an innovation and digital-led economy, DWTCA is looking to support businesses underpinned by blockchain and cryptographic technologies. Our agreement with the Securities and Commodities Authority will allow DWTCA to broaden its regulatory, licenses and services capabilities, in addition to extending the centralised supervision of the crypto market to our free zone.His Excellency Helal Saeed Almarri, Director General of Dubai World Trade Centre Authority (DWTCA) Press Release
Cryptocurrency and Blockchain Technology
Forbes Advisory UK defines cryptocurrency as a digital means of exchange that uses cryptography as a means of security.
Most cryptocurrencies do not need to go through banks or governmental organisations. This is one of the main differences from the more traditional currencies like the US Dollar or Sterling Pound. Instead, cryptocurrencies work by blockchain technology, which is basically a large database that stores its records across computers. The stored data cannot be tampered with or changed retrospectively, making it safer than most of the traditional payment methods we use today.
Financial regulators have previously expressed their concerns about implementing cryptocurrency on a larger international level. However, like all things in life, there are pros and cons…and digital seems to be the future.