The Dubai Multi Commodities Centre (DMCC) signed a Memorandum of Understanding (MoU) with the Securities & Commodities Authority (SCA) that is intended to lead to the establishment of rules and regulations for listing and trading crypto currencies in DMCC.
DMCC has already announced a launch of a ‘Crypto Valley’ in Dubai, designed to foster growth, collaboration and integrity across the global blockchain economy. With the MoU in place, DMCC will be able to issue the licences related to the crypto business, with the approval of the SCA.
In early 2020, DMCC signed an agreement with CV VC that will bring the world’s leading blockchain and cryptographic technologies’ ecosystem to Dubai. CV VC is a Swiss early-stage venture capital investor that invests in blockchain startups worldwide and operates both an incubation programme for young companies as well as its own ecosystem, including events and co-working spaces in Zug, Vaduz and Dubai, under the CV Labs brand.
“Through this agreement with the SCA, DMCC is expanding its current range of crypto assets licences, which perfectly complement the existing business licence options,” said DMCC chairman and chief executive Ahmed bin Sulayem, who joined the CV VC Advisory Board in February. “It 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. Cutting-edge technologies are at the forefront of our strategy and they will play an instrumental role in driving increased trade through Dubai in the future. 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.”
Last October, the SCA issued Decision No. (23/R. Mٌ) of 2020 Concerning Crypto Assets Activities Regulation to develop an integrated ecosystem for the crypto and blockchain industries. DMCC will also issue a new set of regulations that will be in compliance with the SCA provisions.
SCA chief executive Dr Obaid Al Zaabi said: “DMCC’s outstanding role in providing an infrastructure for developing and managing a prosperous commodities market and for taking the initiative to create a sophisticated environment for the crypto-asset industry.”
The DMCC is a member of the Global Blockchain Council. Last year it DMCC both DigitalSugar, a blockchain-enabled trading platform for sugar, and the Agriota e-Marketplace, an agri-commodity trading and sourcing platform that uses blockchain.