In a first, Regal RA DMCC, a gold trading company in the Middle East was granted license to trade and store cryptocurrencies by the Dubai Multi Commodities Centre (DMCC).
In its statement, the DMCC said the license grants the company permission to store bitcoin, ethereum and other alternatives to the best-known digital currencies in a vault. This vault is located in the headquarters of the commodities free zone.
As a salient feature, this vault would not have any access to a network and whatever physical devices present will be fully insured against theft, hacking or natural disaster for its crypto-commodity market value. Crypto-commodities are those that trade in bitcoin.
Nowadays, there is a rise in warnings by government regulators and investors about the dangers of investing in cryptocurrencies due to their presence largely being outside the regulatory net. In lieu of these warnings, about $530 million was stolen from a Tokyo based exchange by hackers. This incident of cyber-theft is regarded to be at par with the Mt. Gox incident as one of the biggest cases of cybercrime involving cryptocurrencies.
However, Regal RA DMCC’s announcement came as the regulator of Abu Dhabi’s international financial center said that it could create rules for exchanges handling virtual currencies, in a sign that authorities in the United Arab Emirates may allow trade in cryptocurrencies to develop. In his statement, Ahmed Bin Sulayem, executive chairman, DMCC said, “At the heart of DMCC’s long term strategic growth plan is the use of technology and innovation to disrupt and connect new markets, industries and customers”.
This welcoming approach to cryptocurrencies is at odds with certain parties in the Gulf like The Saudi Arabian central bank and Qatar’s central bank which had advised people not to trade bitcoin and not to deal in any way with cryptocurrencies.