In a new development and another more liberal step in the adoption of the cryptocurrency industry, the Dubai Commodity Center has issued a new decision regarding cryptocurrencies backed by gold.
The Dubai Financial Services Authority said this week that it has started receiving applications for licensing companies working in the field of digital tokens, to work in the Dubai International Financial Center.
DMCC has signed a Memorandum of Understanding with Safe Gold, the digital gold trading platform in Asia, regarding the use of gold-backed digital assets.
The signing of the memorandum will enable a system of digital certificates backed by gold, starting in the UAE, and then throughout the Middle East and North Africa region.
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The physical gold bars will be stored in safe and approved vaults with guarantees issued by the DMCC Tradeflow platform.
It is a central registry whose mission is to record the possession and ownership of gold and goods stored in state facilities.
According to the details of the agreement, gold-backed digital certificates will then be available for trading on the Safe Gold platform.
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It is noteworthy that Binance, the provider of blockchain infrastructure and cryptocurrency, obtained a financial services permit from the Financial Services Regulatory Authority of the Abu Dhabi Market.
Last March, the Dubai Financial Services Authority issued the advisory paper for the regulation of crypto-tokens and outlined plans to implement the digital token system.
According to the system, only cryptographic codes that are recognized by the DFSA, and that meet certain criteria, are allowed to be used in the DIFC.