Dubai's Financial Services Authority is taking feedback on its proposed regulations for cryptocurrency tokens. Submissions can be provided over the next 30 days.
Dubai , Dubai
30 March 2021, 12:00 AM
30 April 2021, 12:00 AM
The Dubai Financial Services Authority (DFSA), which oversees financial firms operating from the Dubai International Financial Centre (DIFC), is moving to regulate the security token space and is seeking public consultation on a proposed framework.
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.
In a statement on 29 March, the DFSA said it was "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"
Bryan Stirewalt, Chief Executive of DFSA said, “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”.
DFSA will also issue proposals for other types of tokens, such as exchange tokens and utility tokens, later in the year.