The Dubai Financial Services Authority has announced the start of receiving applications for licensing companies operating in the field of encrypted tokens to operate in the Dubai International Financial Center.
According to the Emirates Today newspaper, the Dubai Authority called on companies wishing to work in the investment sector in digital currencies and encrypted tokens to submit their applications to obtain the license.
The Dubai Financial Services Authority stated that companies operating in this sector must be located mainly in the Dubai International Financial Center, and that daily business management and business supervision be carried out in the center.
For his part, Walid Saeed Al-Awadi, Chief Operating Officer of the Dubai Financial Services Authority, said that the authority issued Consultation Paper No. (143) to regulate encrypted symbols in March of this year, in which it identified proposals to regulate the provision of financial services related to encrypted symbols in or from the center of Dubai. global financial.
Al-Awadhi added that the encrypted tokens system, which came into effect on the first of November, encourages companies to achieve a balance between innovation in the field of encrypted tokens, providing the required attention to the needs of dealers, and the business risks associated with encrypted tokens.
He noted that the main features of the system include the adoption of a broad definition of crypto-tokens, which includes cryptocurrencies and stablecoins.
The Chief Operating Officer of the Dubai Financial Services Authority stated that, according to the system, it is only allowed to use encrypted symbols recognized by the Dubai Financial Services Authority, which meet certain criteria, in the Dubai International Financial Center, and it is forbidden to carry out any financial service activities using what is called It is labeled as Prohibited Codes, including Algorithmic Codes and Privacy Codes.
Al-Awadi confirmed that a range of financial services activities can be carried out using encrypted codes. This includes, for example: providing custody services, asset management, trading, arranging and advising services, adding that «companies wishing to provide financial services related to encrypted tokens must be based in the Dubai International Financial Center.