Dubai Free Zone and the Securities and Commodities Authority came to good terms and signed the agreement. The alliance allows cryptocurrency exchanges to acquire a license in the Free Zone.
The Deputy Director of the Dubai Airport Free Zone (DAFZA), Amna Lootah, recently signed an agreement with Maryam Al Suwaidi, Acting Director-General of the Securities and Commodities Authority (SCA) to bring a supportive stance to the regulation, offering, listing, and trading of bitcoin and cryptocurrencies to tourists in that area.
The information came to light on May 19 by the digital newspaper Khaleej Times. The media outlet explained that this agreement allows cryptocurrency exchanges to obtain a license within the Dubai Airport Free Zone.
Also, through this partnership, DAFZA will provide a flexible regulatory framework and legislative environment that intends to set an improved experience for foreign investors in the cryptocurrency ecosystem.
The Agreement Allows the Authorities to Monitor Entities in the Free Zone
On the other hand, the SCA will be in charge of supervising the offer, issuance, and listing of cryptocurrencies, as well as regulating financial activities related to the granting of licenses within the jurisdiction of DAFZA.
The agreement also establishes that the authorities will monitor the entities that operate the Dubai Free Zone and that have obtained authorization to work with cryptocurrencies within the framework of this agreement.
Another beneficial feature is the help it would bring to the cryptocurrency sector and its growth. It would also increase the use of applications that work with blockchains in Dubai and the United Arab Emirates (UAE).
The United Arab Emirates and the Emirate of Dubai have also confirmed their commitment to blockchain technology through a set of strategic plans and initiatives that will bring relevance to this sector.
Cryptocurrency Demand Accelerates in the UAE
According to the Khaleej Times newspaper, the demand for cryptocurrencies is accelerating in the UAE and other countries on the continent, as global trading volumes for crypto-assets continue to increase too.
In the same way, the digital media reflects that the free zone has more than 25 years of great trust in the international business community, which seeks to establish its commercial activities in the sector.
Bitcoin’s Current Status
During the morning of May 19, BTC fell to an unexpected level, although it bounced back to around $ 36,000. According to data from TradingView, it can be seen that at its lowest point so far this day, bitcoin fell to $ 30,066.
The last time that the price of BTC decreased that way was on January 28, according to the same source. Since then, bitcoin had doubled in price, setting a new all-time high above $ 64,000 in mid-April.
BTC opened the trading day on May 19 at $ 42,900. As a result, it lost nearly $ 13,000 during the crash. The cryptocurrency reached a trade set of $ 6,000. In a matter of a week, the cryptocurrency has depreciated about 40%. The crash came after Tesla billionaire founder Elon Musk unleashed a campaign against Bitcoin’s alleged environmental impact through its mining and excessive use of energy.
By: Jenson Nuñez
