DFSA Crypto Token regime comes into force

DFSA Crypto Token regime comes into force

Dubai, UAE: The Dubai Financial Services Authority’s (DFSA) Crypto Token regime comes into force today. This regime forms the second phase of the DFSA’s work in this area following the introduction of a regime in the Dubai International Financial Centre (DIFC) for the Regulation of Investment Tokens in October 2021.

The intention of the Crypto Token regime is to foster innovation in a measured, responsible and transparent manner while still meeting the DFSA’s regulatory objectives. The DFSA has taken a balanced approach in the development of this regime and will consider, as the sector develops, further changes and amendments to the regime in alignment with best practices and standards adopted by International Standard-setters.

The regime is comprehensive, covering not only AML/CFT risks in respect of trading, clearing, holding or transferring Crypto Tokens but also addressing risks relating to consumer protection, market integrity, custody and financial resources for service providers. The DFSA has extended the scope of many current financial services activities, for example, advising, dealing, arranging, trading and custody, to allow firms in the DIFC to be able to provide products and services in relation to Crypto Tokens.

Ian Johnston, Chief Executive of the DFSA said: “As a progressive regulator, the DFSA recognises