thecoinrise.com
As part of its efforts in stimulating the digital fintech space while also being in tune with market demands and requitements, the Dubai Financial Services Authority (DFSA) has established a framework of regulations for investment tokens.
The DFSA, a Dubai based independent regulatory body, is in charge of monitoring and regulating financial services companies operating or hoping to do so within the country. It also licenses and regulates products and services offered by these companies.
Recent reports by Emirates news agency WAM, says that according to the new DFSA regulatory framework, investment tokens are considered as either “a Security Token or Derivative Token.”
The report also notes that the new regulatory structure is only the first step of many, in DFSA’s Digital Assets Regime, reflecting the suggestions brought forward in the Consultation Paper 138 that was published in March 2021. The consultation paper as at that time, was seeking public opinion on the plans of DFSA for regulating Security Tokens.
Recall that in March, there were reports that the financial regulator in Dubai asked members of the public to submit feedbacks and comments regarding its proposed rules for cryptocurrencies that ate regarded as security tokens.
What the new investment token regulation framework would be doing is that it is designed in such a way that it’ll protect investors and also provide legal certainty for market operators.
The framework also specifies the kind of investment tokens that are allowed and which may be listed on any Digital Asset Exchange platform in the Dubai International Financial Centre, as well as other relevant and necessary information.
Lastly, the DFSA has been reportedly linked with plans of developing unlisted securities that are not already covered by the investment tokens regulatory framework. Hopefully, they’ll include cryptocurrencies, utility tokens, and certain stablecoins. According to reports, the DFSA might soon publish a complimentary, second consultation paper in the Q4.