The United Arab Emirates continues to be one of the friendliest jurisdictions in the world for the digital asset industry.
The Dubai Financial Services Authority (DFSA) has established a regulatory framework for investment tokens as part of its efforts to stimulate the digital financial and technological environment while meeting the demands of market players.
The DFSA is an independent regulatory authority in Dubai that is responsible for monitoring and regulating financial services companies wishing to operate there. It also licenses and regulates their products and services.
According to a report by Emirates WAM news agency, the DFSA regulatory framework defines investment tokens as a “security token or token derivative“.
The report notes that the creation of the new regulatory structure is the first step in the DFSA digital asset regime, which reflects the suggestions made in Consultation Paper 138 published in March 2021. The consultation paper provided information on the DFSA’s plans to regulate security tokens.
As Cointelegraph reported in March, the financial regulator in Dubai called on members of the public to comment on the proposed rules for cryptocurrencies considered as security tokens.
The investment token framework is designed to protect investors and provide legal certainty for market operators.
It specifies the type of investment tokens allowed that may be listed on the Digital Asset Exchange at the Dubai International Finance Center, as well as other relevant information.
The DFSA is also working on plans for unlisted securities that are not covered by the investment token regulatory framework. These are expected to be cryptocurrencies, utility tokens, and some stable coins. The DFSA is expected to publish another consultation paper in the fourth quarter of this year.
29-10-2021, Mr.Advice TEAM