The Dubai Financial Services Authority (DFSA) plans to submit two advisory documents on cryptoasset regulation in 2021.
The Dubai International Financial Center Special Economic Zone Financial Regulatory Authority will develop a regulatory framework for digital assets as part of the 2021-2022 business plan released this week.
According to information from the DFSA, the future cryptoasset regulation structure will expand the Authority’s powers over digital asset issuers and associated trading platforms. The framework will include rules for different types of digital assets, such as tokenized securities and cryptocurrencies.
“We will build on the latest advances in this area during the business planning period by developing a digital asset regulation regime and implementing rules that support various innovative business models,” the regulator said.
According to The National, DFSA plans to publish two advisory documents to get feedback on the proposed rules. DFSA’s head of strategy, policy and risk, Peter Smith, said the documents will be released in the first two quarters of 2021.
“We plan to regulate a wide range of digital assets, including stock tokens, instrument tokens, various types of exchange tokens, cryptocurrencies and firms that provide related services in these markets,” Smith said.
In June 2018, the Abu Dhabi Financial Services Regulatory Authority (FSRA) issued a regulatory framework that requires cryptocurrency exchanges to be licensed and approved by the FSRA as a crypto asset venture. The regulation also restricts the types of cryptoassets a business can use.
In addition, in the fall of 2019, the United Arab Emirates Securities and Exchange Commission (SCA) submitted a draft cryptoasset regulation bill for public comment.
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