The United Arab Emirates opened a new vista in its push for digital-led economy as it signed a deal to support and encourage trading of crypto assets with the Dubai World Trade Centre Authority (DWTCA).

UAE’s Securities and Commodities Authority signed the agreement with DWTCA on Wednesday.

Maryam Al Suwaidi, Acting CEO signed on behalf of the exchange body, while Helal Saeed Almarri, Director General of DWTCA signed for his organisation.

“As Dubai continues its drive towards an innovation and digital-led economy, DWTCA is looking to support businesses underpinned by blockchain and cryptographic technologies,” Mr Almarri said, “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.” 

The agreement between these agencies empowers the the trade centre authority to issue approvals and licenses for financial transactions involving digital assets.  

The securities body will handle regulatory oversight of the issuance, offering, listing, and trading of digital assets. It will also oversee the licensing of financial activities that fall within the DWTCA’s jurisdiction.

The approval of cryptocurrency trade by the Emirati government comes along with growing acceptance of cryptocurrency and trade among world governments.

Khaleej Times reported that in May, the Dubai Airport Free Zone Authority signed a similar agreement with the securities body. The report noted that Dubai’s freezone opened a blockchain-based exchange for sugar trading in 2020 and had the Bitcoin Fund listed on the Nasdaq Dubai exchange.  

In September, El Salvador became the first country that formally adopted Bitcoin as its national currency and legal tender.