- The DFSA is going to improve the current regulatory measures in the country.
- It will release two consultation papers within the first two quarters of 2021.
- The papers will collect data that will allow the regulator to establish a new set of rules.
- The new laws will take into account various digital assets along with their service providers.
Dubai free zone’s financial regulator, DFSA, is going to improve the current crypto laws in the country. The idea is to build a blueprint that’ll boost the experience of local crypto firms.
The Dubai Financial Service Authority (DFSA), will release two new papers in the first half of 2021. The papers will collect data to help draft the new future rules.
DFSA plans to use this data to place a new regulatory frame in the nation. This will ensure a secure and legal space for all digital assets in crypto trading.
The new frame will take into account various digital assets. It will include cryptocurrencies like Bitcoin as well as tokenized securities.
Peter Smith, Head of Strategy at DFSA said that besides digital assets they also aim to regulate firms that provide related services in the market.
Moreover, the DFSA claims that this step will help raise its reach in keeping a check on crypto service providers. Likewise, they can also keep watch over exchange and trade sites.
This initiative will fall in line with Dubai’s 2021 – 2022 business plan. Released on Jan 18, the paper details the DFSA’s entire strategy.
UAE made its first set of crypto rules in June 2018. Back then, the Financial Services Regulatory Authority (FSRA), headed by Abu Dhabi Global Market, set these rules. Also, it was headed by Abu Dhabi Global Market.
The FSRA went on to set in more crypto-related rules. Consequently, it granted approvals in 2019 to the cryptocurrency exchange — BitOasis.