The Securities and Commodities Authority (SCA) of the United Arab Emirates (UAE) has signed an agreement with the Dubai World Trade Centre Authority (DWTCA) to support the trading of cryptocurrencies in DWTCA's free zone, reported the state news agency.

Under this agreement, a framework is established that allows DWTCA to issue approvals and licenses necessary to conduct financial activities relating to cryptocurrencies.

“Dubai poised to become crypto hub,” commented Su Zhu, CEO, and co-founder of Three Arrows Capital. “Crypto bigger epochal shift than the discovery of petroleum itself.”

As part of its efforts to drive innovation and become a digital economy hub, Dubai World Trade Centre Authority also announced on Wednesday that it would support the regulation, offering, issuance, listing, and trading of crypto and related financial activities within its free zone.

SCA meanwhile will be overseeing, monitoring, and inspecting entities operating within this free zone.

As the region’s financial hub and tax haven, Dubai has taken several steps to bolster the use of blockchain within the city.

The Airport Free Zone Authority of Dubai also signed a similar agreement with the SCA back in May. In June, a Bitcoin Fund – the first of its kind in the region – was listed on the Nasdaq Dubai exchange.

According to financial analysts, Dubai is well-positioned to benefit from the growing crypto market in the Middle East as regulators work on favorable rules leading to its acceptance and promotion of blockchain-based technologies.

“With the rise of new technologies such as non-fungible tokens set to play an important role in the future of commerce…DWTCA is also pursuing ways to offer a sustainable home for this ecosystem, in order to stay future ready,” said Helal Saeed Almarri, director-general of DWTCA.

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