The Dubai Financial Regulator has set a 30-day public comment period for cryptocurrency regulations.
DFSA Needs Comments on Proposed Crypto Regulation
The Dubai Financial Services Authority (DFSA) is continuing its efforts to create a standardized framework for cryptocurrency regulations in the megacity.
According to a DFSA press release released on Monday, Dubai’s financial regulator has urged the public to comment on the proposed regulations on cryptocurrencies, which are considered security tokens.
The public comment phase of the process lasts 30 days and is part of the model for setting up the DFSA’s Regulatory Security Token Framework.
Dubai’s security token infrastructure strives to ensure regulatory transparency in three main areas. The first part discusses the creation of a standardized framework for the provision and trading of digital securities for investors, including retail customers.
The DFSA gives priority to quality control agreements to protect the issuers of security brands from complying with the strict disclosure requirements in the prospectus and thus to protect private investors.
The third part of the DFSA focus is on support services related to security tokens. This includes asset custody providers and advisory services.
Bryan Stirewalt, CEO of DFSA, said commenting on the need for clear regulations for security tokens based on decentralized ledger technology:
“The proposal for regulation of security tokens is a key milestone in paving a clear and certain path for those issuers who wish to raise capital in or from the DIFC using DLT and similar technology. And for those firms who intend to be involved in this market, by conducting or providing financial services.”
According to Stirewalt, the DFSA’s goal is to strike a balance between regulatory oversight and promoting innovation in digital assets. The regulator plans to issue utility tokens and “exchange token.
In fact, the city has become a hub for crypto and blockchain technology in the Gulf region. The state licensing company Kiklabb began accepting cryptocurrency payments back in February.
