Dubai’s DFSA Planning to Regulate Cryptocurrency

Dubai’s financial watchdog, the DFSA is planning to regulate cryptocurrency. The regulator is expected to issue two consultation papers in the next six months.

January 20, 2021 | AtoZ Markets – The Dubai Financial Services Authority (DFSA) will begin work on creating a regulatory framework for digital assets. This is stated in the business plan for 2021-2022.

DFSA operates in a special economic zone – the Dubai International Financial Center and is responsible for supervising and complying with requirements in accordance with international standards.

Regulatory Structure Will Include Requirements for Cryptocurrencies

The future regulatory framework will expand the DFSA’s authority over digital asset issuers and related trading platforms. Also, the regulatory structure will include requirements for tokenized securities and cryptocurrencies.

“We will build on the latest advances in this area during the business planning period by developing a digital asset regulatory regime and implementing rules that support a variety of innovative business models,” the document says.

According to The National, the DFSA will submit two documents in 2021 to provide feedback on future regulations.

In 2018, the financial regulator of Abu Dhabi as part of the Department of Global Markets of the emirate announced its intention to extend the regulation to cryptocurrency exchanges.

As a reminder, the Central banks of Saudi Arabia (SAMA) and the United Arab Emirates (CBUAE) have announced the agreement to launch a dual-issued CBDC for Cross-Border Payments.

It should also be noted that Ripple recently set up a regional base in Dubai, and the company’s CEO, Brad Garlinghouse, has previously shortlisted the UAE for its new headquarters, among other countries, if it leaves the US amid regulatory scrutiny in the country.

Read also: Dubai Seeks To Launch Its Crypto Valley Ecosystem

The US Securities and Exchange Commission (SEC) recently sued Ripple, Garlinghouse, and co-founder Chris Larsen for engaging in sales of unregistered securities, i.e., XRP.

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