Dubai releases regulatory framework for investment tokens

Dubai’s Financial Services Authority (DFSA) announced new measures for the regulation of investment assets, with the aim of improving the country’s digital crypto financial ecosystem.

The financial entity, in its regulatory framework, considers investment tokens as “value” or “derivative” and classifies cryptocurrencies as “value tokens“, which can be issued, transferred and stored using “Distributed technology Ledger Technology (DLT)”. In this sense, investors will have a legal framework to work with.

These measures are intended to protect investors and provide legal security to market operators, defining the type of investment tokens that will be allowed on the Digital Asset Exchange at the Dubai International Financial Center.

According to the DFA, cryptographically insured tokens are different from exchange or crypto. Thus, the regulatory body plans to establish other measures that allow the inclusion of “public service tokens” or those protected by “assets or stable currencies.”

Peter Smith, Managing Director, Head of Policy Strategy and Risk at DFSA, highlighted that creating an appropriate environment for innovative companies to prosper in the UAE is a top priority for both UAE governments and Dubai and DFSA.

This system is considered the first ladder for a new regulatory structure considered the first step for the Digital Assets Regime within Dubai, which recorded the applications and suggestions in a consultation document, which was carried out last March, when the DFSA inquired about the opinion of citizens about security tokens in order to regulate them.

The DFSA also highlighted that it is carrying out the procedures and investigations that allow it to generate measures for other assets that do not enter the framework of investment tokens, among which the following stand out: cryptocurrencies, utility tokens and stable currencies.

M. Rodríguez

Source: ezanime.net