Dubai Working on Crypto Regulations Framework
Dubai Financial Services Authority( DFSA) is reportedly working on a crypto regulatory framework for the Emirate.
According to DFSA’s plan for the 2021/2022 fiscal period, which was released on January 18, 2021, the organization is drawing up plans for a regulatory framework for digital assets, tokens, and companies in the digital assets ecosystem.
The regulatory framework will be in line with the financial markets’ peculiarities while also adopting the global standards obtainable in other countries. Two consultation papers are to be published to seek the citizens’ general views on the proposed regulatory framework.
The DFSA plan is also set to develop Dubai’s capital markets by creating means for Small and Medium Enterprises ( SMEs) to raise funding through equity and debt listings in the Dubai International Financial Centre ( DIFC).
According to the CEO of DFIC, the reputation of the DIFC as a leading financial center remains a core priority. He also promised to scrutinize all the companies seeking to operate outside the regulations regardless of the business models or legal backing, as seen in the DFSA lawsuit against Al Masah Capital in 2019.
The first set of cryptocurrency-related rules in the United Arab Emirates was published about two years ago. The rules were published by the Financial Service Regulatory Authority ( FSRA) and provided guidelines for ICOs, cryptocurrencies, and crypto exchanges. The FRSA is also the body charged with granting approvals to cryptocurrency exchanges in control.
Various regulatory agencies in the Middle East region have been working on creating a long-lasting framework for digital assets like cryptocurrencies in the last two years. FSRA approved the operations of crypto exchanges like MatrixExchange, BitOasis, and others in 2019. Bahrain’s apex bank also published rules on digital assets services in 2019.