Dubai is an industrialized city in the Middle East. The United Arab Emirates’ business center is well-known for its cryptocurrency-friendly environment. Additionally, it has gained world recognition for its technology-focused regulatory structure.
This month, the Dubai Multi Commodities Centre (DMCC) has inked an agreement with the UAE’s Securities and Commodities Authority (SCA). The accord permits licensing for enterprises that work with cryptocurrency or digital assets. The agreement also results in the Dubai economic free zone opening for companies that offer, list, trade, and issue cryptocurrencies.
We are pleased to learn about this development in Dubai. We know that this Middle Eastern urban locale is a technology hub, and it is inevitable that it will support cryptocurrencies and businesses that use them. The specialized DMCC crypto center will furnish the license after the SCA’s processing.
In accordance with the SCA’s policies presented in October 2020, the SCA will regulate cryptocurrency-oriented activities. The UAE-based entity will also develop a unified ecosystem for blockchain and cryptocurrency industries. The agreement between the DMCC and SCA will reportedly promote blockchain applications’ development in Dubai. It will also help foster growth within the sector, based on the news posted online by news website and financial platform Investing.com.
Ahmed bin Sulayem explained that the DMCC is expanding its present range of cryptocurrency asset licenses via the deal with the SCA. The DMCC chief executive officer remarked that his group is making it effortless for blockchain and cryptocurrency-focused enterprises to open and serve in Dubai as the country carries on making strides within the blockchain and crypto spaces.
In early 2020, the DMCC also signed an agreement with CV Labs and CV VC. This deal would bring the crypto and blockchain technologies ecosystem together in the UAE city. Plus, also happening last year, the DMCC introduced DigitalSugar. This trading platform is based on blockchain technology. DigitalSugar’s administrators designed it for the Agriota e-Marketplace and sugar. This trading platform is meant to bridge the gap between the UAE’s food sector and millions of Indian farmers in rural areas.
We reckon that Dubai is doing what is expected with its welcoming of cryptocurrency and blockchain technology-oriented businesses. The contemporary financial world is headed towards digitalization. It is moving away from the use of conventional currencies as physical cash in business transactions.
Therefore, Dubai’s adoption of digital assets like cryptocurrencies is unsurprising, considering that it is an industrialized and technology-focused city. We want to commend Dubai’s administrators in their smart move. We think that more modern cities will follow suit, welcoming companies that significantly back cryptocurrency use.