Dubai’s DIFC enacts world’s first comprehensive digital assets law

Dubai’s DIFC enacts world’s first comprehensive digital assets law

Image: DIFC Dubai International Financial Centre (DIFC) has taken a landmark step by enacting the world’s first digital assets law. This new legislation aims to provide legal certainty and a robust framework for investors and users of digital assets within the financial centre. The trillion-dollar digital asset industry has witnessed rapid growth and holds immense potential for future innovation. While many jurisdictions have focused on regulating specific applications of these assets from a financial services perspective, DIFC’s law delves deeper. It addresses the fundamental legal characteristics of digital assets, outlining how users and investors can interact with them. Before this enactment, the legal nature of digital assets remained somewhat ambiguous. International judgments provided some guidance but lacked a comprehensive framework. Through extensive research and public consultation, the DIFC identified key legal questions and built a framework to address them. Clearly defining digital assets with updates on other key areas The new Digital Assets Law (DIFC Law No 2 of 2024) establishes a clear definition of digital assets as a form of property. It details how these assets can be controlled, transferred, and dealt with by various parties. This legal clarity will foster increased confidence and participation within