DFSA introduces new “crypto token regime” to boost digital asset regulation
The Dubai Financial Services Authority (DFSA) has introduced a new “crypto token regime” designed to foster digital asset innovation in a “measured, responsible and transparent” way.
DFSA initiates second phase of crypto regulation plans
The regime forms the second phase of the DFSA’s regulatory work in the area following the introduction of regulation covering investment tokens in October 2021.
The DFSA has also extended the scope of many current financial services activities to allow firms in the Dubai International Financial Centre (DIFC) to be able to provide products and services in relation to crypto tokens.
DFSA CEO Ian Johnston says the body is a “progressive regulator” that recognises the growing interest in new financial products like cryptocurrency.
“Our work to develop a comprehensive crypto token regime has taken into account feedback from a broad range of stakeholders. It aims to strike a balance between encouraging innovation in the DIFC and protecting the consumers of these financial products,” Johnston adds.
The regime covers anti-money laundering and combatting the finance of terrorism (AML/CFT) with regards to trading and holding crypto, as well as consumer protection, market integrity and custody.
The regulator says it has taken “a balanced approach” in developing the framework and will consider further changes “in alignment with best practices and standards adopted by international standard-setters”.
