UAE DFSA regulates security tokens in newly amended regulations
The Dubai Financial Services Authority has just published the amendments needed to the existing regulatory framework to include security token offerings. This comes after DFSA had sent out a consultation paper in June on this topic. DFSA is the regulatory body working out of DIFC ( Dubai International Financial Center)
There are 10 amendments to the regulatory framework that have been put in place. DFSA has defined security tokens as units admitted to trading on an alternative trading system in the manner and circumstance specified in this Law and rules.
In a press relesae statement, Peter Smith, Managing Director, Head of Strategy, Policy and Risk at the DFSA said: “Creating an ecosystem for innovative firms to thrive in the UAE is a key priority for both the UAE and Dubai Governments, and the DFSA. Our consultation on Investment Tokens enabled us to understand what firms were looking for in a regulatory framework and introduce a regime that is relevant to the market. We look forward to receiving applications from interested firms and contributing to the ongoing growth of future-focused financial services in the DIFC.”
Kokila Alagh, Founder and CEO of KARM Legal spoke to UNLOCK and stated, “With the world looking to the UAE to become a hub for tokenization the DFSA amendments to existing regulatory framework and their inclusion of security tokens is a groundbreaking development ushering in a new era for financial markets determining those markets for the next 100 years.
