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Dubai DFSA improves crypto token structure to promote innovation and development
THE Dubai Financial Services Authority (DFSA) announced major improvements to its crypto token framework on Monday. These changes follow the proposed regime “Consultation Paper 153 – Updates to the Crypto Token Regime” of January 2024. The changes mark a significant step forward in advancing the regulatory environment for crypto tokens at the Dubai International Financial Center (DIFC) .
The new changes to the DFSA’s crypto token framework concern the ability to offer external and foreign fund units that invest in recognized crypto tokens. Additionally, they have improved the ability of domestic qualified investor funds to invest in unrecognized crypto tokens, custody crypto tokens, and stake crypto tokens.
Additionally, they address financial crimes through anti-financial crime compliance guidelines. This includes tracking “travel rule” transactions and blockchain analytics. Additionally, they include crypto token recognition and crypto token recognition fees.
The DFSA made the changes in light of recent market developments, recommendations from international standards bodies and its supervisory experience.
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“Our aim with the crypto token regime is to promote innovation in a responsible and transparent way, whilst ensuring we achieve our regulatory objectives,” said Ian Johnston, chief executive of the DFSA.
Over the past two years, the DFSA has worked with over 100 license-seeking companies, gaining valuable insights into market dynamics and regulatory needs. “We at the DFSA have taken a balanced approach in developing this regime and remain committed to evolving it in line with best practice and global standards,” added Johnston.
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