The Dubai Financial Services Authority has announced that they are willing to take in any feedback regarding its proposed cryptocurrency token regulations over the next 30 days.
In a statement the DFSA said:
The Authority has brought out its ‘Framework for Regulating Security Tokens’, which has emerged as a new and growing area of interest for many industry participants. We are actively engaged with key stakeholders in Dubai and around the world on the future of finance and the rapidly growing area of financial technology, including various Distributed Ledger Technology (DLT) applications.
While Brian Stirewalt, Chief Executive of the DFSA, added:
The proposal for regulation of security tokens is a key milestone in paving a clear and certain path for those issuers who wish to raise capital in or from the DIFC using DLT and similar technology. And for those firms who intend to be involved in this market, by conducting or providing financial services.
Our proposals promote and facilitate innovation, while also protecting consumers, addressing market integrity and mitigating ML/FT and other risks. We have drawn on the experience of other regulators who have taken cautious steps in this rapidly developing area, while addressing DIFC specific needs.”
The DFSA, as taking from their own statement, proposes a sophisticated and innovative regulatory framework for regulating security tokens which is outlined to be a fast growing area in terms of popularity for the industry.
However, the framework goes above and beyond the typical securities to cover derivatives, enabling distributed ledger tech and more emerging tech across many other investment platforms.
The regulatory regime will be updated to facilitate DLT-activities in:
Key changes being proposed:
Dubai has led the UAE with progressive cryptocurrency regulation, especially since the Dubai Financial Services Authority (DFSA) released consultation papers with the aim to implement and establish a regulatory framework for cryptocurrencies.
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Source: Gulfnews
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will take place on the 25th to 26th May, 2021, in the emirate of Dubai. The event will bring together key brands and individuals from the converging sectors of AI, blockchain, IoT, Quantum Tech to discuss and shape the future of emerging tech.
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