Companies trading in cryptocurrencies can acquire a licence to operate in Dubai’s free zone. Dubai Multi Commodities Centre started issuing licences, provided that certain conditions are met. Those willing to receive a licence need a prior approval by the DMCC management and exchanges or brokerages can’t receive the licence at this stage.
Is it Legal?
DMCC’s executive director for commodities, Sanjeev Dutta, said:
“Obviously, anything that we facilitate is subject to laws and relevant regulations. If there’s a law and a regulation that is prohibitive, then certainly there is no more progress in that area for us,”
The cryptocurrency market is still largely unregulated in the UAE, so the firms are being considered on a “case-by-case” basis.
“It’s still very nascent, that entire market. To me, what is important is the fact that you are still evaluating it as part of your innovation strategy. You are not saying ‘no’ to something. You are not saying ‘yes’ either, but you are exploring, so you are clearly ahead of the others when the time to make a decision comes.” Dutta said.