Cryptocurrency News

Dubai Regulatory Authority ‘DFSA’ Working Towards Crypto Adoption.

The DFSA [Dubai Financial Services Authority], is working on its efforts to make a uniform framework for cryptocurrency regulations within the megacity.

In line with an official update by the DFSA issued earlier today on Monday, Dubai’s financial regulator has called on members of the general public to submit comments on its proposed regulations for crypto assets deemed to be security tokens.

The public comments phase of the method will last for 30 days and is a component of the modalities for instituting the DFSA’s “Framework for Regulating Security Tokens.”

Dubai’s security token infrastructure focuses on offering regulatory clarity across three major areas of concern. The primary part deals with creating a regulated framework for offering and trading digital securities to investors along with the retail buyers.

The DFSA is prioritizing internal control protocols to guard retail investors with security token issuers complying with strict disclosure requirements in their prospectuses.

The third area of concern for the DFSA focuses on the support services related to security tokens. These embody asset custody providers and advisory services.

Commenting on the necessity for clear cut regulations for security tokens supported decentralized ledger technology, DFSA chief executive Bryan Stirewalt explained:

“The proposal for a regulation of security tokens may be a key milestone in paving a transparent and certain path for those issuers who wish to boost capital in or from the DIFC using DLT and similar technology. And for those firms who shall be involved within this market, by conducting or offering financial services.”

In line with the Stirewalt, the DFSA’s goal is to strike a balance between regulatory oversight and promoting innovation within the digital asset space. The regulatory authority plans to publish laws for utility tokens and “exchange tokens” later in 2021.

Moreover, the town has become a hub for cryptocurrencies and blockchain technology within the Gulf region. Earlier in February, Kiklabb, a state-owned licensing firm, began accepting crypto payments.

Also earlier in July last year, the UAE [United Arab Emirates] government debuted a blockchain-based KYC [Know Your Customer] platform.

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