Dubai is already becoming the leading hub for crypto and blockchain technology in the gulf region. About a week ago the government announced that crypto businesses can now open offices within the DMCC free zone in Dubai. Also, the DFSA has recently called for public opinion as part of the proposed security tokens regulation.
The Dubai Financial Service Authority (DFSA) is actively working with several stakeholders concerning the future of cryptocurrencies in the city. The regulator recently called for public comments on its proposed regulation for security tokens.
As a result, the DFSA has set a 30-day window to receive comments from the general public. According to the CEO, Bryan Stirewalt, the proposal covers a lot of DLT-related activities like the issuance and trading of security tokens etc.
Security Tokens Regulation Will Protect Retail Investors – Bryan Stirewalt
Bryan said that the proposed regulation is a huge step towards creating a clear structure for DLT service providers. He remarked that the proposal will help protect consumers, especially retail investors and preserve market integrity. The DFSA reported that it aims to provide a defined and safe environment for the digital asset space of the city to thrive.
There is recently a lot of ongoing work related to the Fintech industry in Dubai. Recently, the Dubai Multi Commodities Centre (DMCC) and Securities and Commodities Authority (SCA) partnered to regulate crypto activities in DMCC. They announced that businesses can now get their licenses to operate in the DMCC free zone.
Also, the Central Bank of Bahrain (CBB) recently licensed CoinMENA, a crypto exchange. Several other regulators are striving to provide a solid regulatory structure for crypto activities in the state. The state also aims to provide a framework for utility tokens in the future.