The Dubai Financial Services Authority (DFSA) has just announced the creation of a regulatory framework for investment tokens as part of its efforts to stimulate the digital financial and technology environment while meeting the demands of market players.
This measure is a new step taken by the UAE towards greater compatibility with digital currencies, to become one of the world's most compatible countries with the digital market.
The DFSA is an independent regulator in Dubai responsible for monitoring and regulating financial services firms wishing to operate there. It also licenses and regulates its own products and services.
The DFSA's regulatory framework defines investment tokens as either a security token or a derivative token.
The creation of a new organizational structure is the first step in the DFSA's digital asset regime, according to a report published by Investing.com, which mirrors the suggestions in the paper. Consultation No. 138 published in March 2021.
The advisory paper sought public input on the DFSA's plans to regulate securities tokens.
The DFSA is also working on plans for unlisted securities not covered by the investment token regulatory framework.
