 has established a regulatory (& standardized) framework for crypto tokens in the megacity.){kind=link}
With the ever so growing popularity of crypto, countries are putting up regulations for disruptive technology. Recently, The Dubai Financial Services Authority (DFSA) has established a regulatory framework for crypto tokens.
The DFSA is a regulatory body independent of the country’s administration. Moreover, it is responsible for monitoring and regulating financial services companies wanting to operate there. Also, it licenses and regulates its products and services.
According to the WAM report, the DFSA’s regulatory framework will define investment tokens as either ‘a Security Token or Derivative Token.’ Also, it mentions the creation of a new regulatory structure, an initial step in the DFSA’s Assets Regime. The regulatory structure reflects the suggestions made in Consultation Paper 138. The paper was published in March 2021. Moreover, the consultation paper sought public input on DFSA’s plans for regulating security tokens.
Previously, the financial reporter in Dubai had called on the members of the public to submit comments upon the proposed crypto rules. The public comments phase of the process lasted for 30 days. This is done so that the investment token framework will safeguard investors and provide legal certainty for market operators. Moreover, the DFSA is prioritizing quality control protocols to protect retail investors with security token issuers complying with disclosure requirements in their prospectuses.
More Specifically, it specifies the sort of investment tokens permitted on a Digital Asset Exchange. Other than that, the DFSA is working on plans for unlisted securities not covered under the investment tokens regulatory framework. Expectedly, these include cryptocurrencies, utility tokens, and certain stablecoins. Following that, the DFSA will publish a follow-up consultation paper in the 4th quarter of this year.
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