Dubai Announces New Regulations on Digital Asset Industry
- Dubai continues to prove support for the crypto industry.
- Dubai regulator, DFSA, established a regulatory framework for investment tokens.
- This is a part of Dubai’s effort in stimulating digital tokens.
As the crypto space continues to grow, more countries show support for the crypto industry and Dubai is one of them. Just recently, Dubai Financial Services Authority (DFSA) released a statement that it has established a regulatory framework for investment tokens.
To clarify, DFSA is an independent regulator in Dubai. It monitors and regulates financial services companies that want to operate in the city. Moreover, it is also in charge of licensing and regulating the products and services of these companies.
According to DFSA, this decision is a part of its plans to incite the digital financial and technological environment, while meeting the demands of market players and adhering to the requirements needed.
Additionally, reports say that the regulatory framework from DFSA sees investment tokens as “a Security Token or Derivative Token”. Reports also note that this is DFSA’s first step towards its Digital Assets Regime, which shows the suggestions made in Consultation Paper 138, which was published in March 2021. This paper also aims to know the public’s input regarding DFSA’s plans for regulating Security Tokens.
It is important to note that Dubai has already seen the high potential of digital assets even before. The city then showed support for the industry by allowing crypto businesses to set up in DMCC Freezone. Apart from this, Dubai also welcomed most of the biggest crypto expos, which helped crypto enthusiasts and business owners to expand their networks.
Indeed, Dubai is slowly and gradually letting the world know that it is supporting the crypto industry with welcoming arms.
Read more: https://coinquora.com/dubai-announces-new-regulations-on-digital-asset-industry/
Text source: News – CoinQuora – Latest Cryptocurrency and Block
