Dubai’s financial regulatory agency for the special economic zone, The Dubai Financial Services Authority (DFSA) has planned on developing crypto regulatory frameworks. On Jan. 18, the DFSA has released a regulatory framework for digital assets as part of its 2021–2022 business plan. The upcoming crypto framework will expand the DFSA’s regulation for digital asset issuers and associated trading platforms.
Dubai to Develop Crypto Regulatory Frameworks
According to a report by the local news agency The National, the DFSA plans to issue two consultation papers seeking feedback on the proposed rules. As per the DFSA’s head of strategy, policy, and risk, Peter Smith the two consultations will be released in the first two quarters of 2021. Smith told the local publication:
“We will look to regulate a wide range of digital assets, including security tokens, utility tokens, the various types of exchange tokens, such as cryptocurrencies and the firms that provide relevant services in these markets.”
However, the business plan did not specify any details or deadline regarding the specific launch of the cryptocurrency regulations.
The DFSA did state that regulatory regimes for digital assets (such as tokenized securities and crypto-currencies) will be built. The DFSA noted:
“We will build upon recent achievements in this space over the business planning period through developing a regulatory regime for digital assets (such as tokenized securities and crypto-currencies), having already implemented regulations supporting various innovative business models.”
UAE’S First Crypto Regulations Appeared Years Ago
The UAE’s first crypto regulations appeared more than two years ago, though at that time the economic zone was not yet popular with crypto companies.
For instance, in 2018, The Abu Dhabi Global Market regulator adopted crypto regulatory guidance and recognized several crypto companies established in the region. It even granted crypto companies such as BitOasis cryptocurrency exchange in 2019. Meanwhile, Ripple named the jurisdiction as its possible base if the company had to take its operations outside the United States.