The Dubai Financial Services Authority, the Special Economic Zone Financial Regulatory Agency, Dubai International Financial Center, wants to improve local cryptocurrency regulations.
The DFSA plans to introduce rules for various digital assets as part of its 2021-2022 business plan, which was released on January 18.
According to the Dubai Financial Services Authority (DFSA), the upcoming cryptocurrency structure will expand the DFSA’s scope of regulation in relation to digital asset issuers and related trading platforms. The structure will include a number of types of digital assets such as token securities and cryptocurrencies such as Bitcoin (BTC):
“We will build on the latest advances in this area during the business planning period, developing a regulatory framework for digital assets (such as securities tokens and cryptocurrencies), after implementing rules that support various innovative business models.
According to the local news agency The National, the DFSA plans to release two advisory documents to request notes on upcoming regulations. Peter Smith, Head of Strategy, Policy and Risk, Dubai Financial Services Authority, said the guidelines will be released in the first two quarters of 2021. “We will consider the possibility of regulating a wide range of digital assets, including security tokens, instrument tokens, etc., and various types of token exchange,” for example, cryptocurrencies and companies providing related services in these markets. ”
The first cryptocurrency rules appeared in the United Arab Emirates over two years ago. In June 2018, the Financial Services Regulatory Authority (FSRA) published the Abu Dhabi Global Market Guide to Cryptocurrencies, Exchanges and Initial Currency Offerings. FSRA continued its active involvement in the industry by issuing several regulatory approvals to companies like BitOasis to trade cryptocurrencies in 2019.