The Dubai Financial Services Authority, or DFSA, continues its efforts to create a unified framework for regulating cryptocurrencies for urban areas.
According to a press release issued by the Dubai Financial Services Authority on Monday, the Dubai Financial Supervisory Authority asked the public to comment on the proposed rules for cryptocurrencies, which are considered security codes.
The public comment phase of this process will last for 30 days and is part of the implementation modalities for the DFSA Security Code Regulation Framework.
The security code infrastructure in Dubai aims to provide regulatory clarity in three main areas. The first part focuses on creating a structured structure for offering and trading digital securities to investors, including retail buyers.
The DFSA prioritizes quality control protocols to protect retail investors through security code issuers who comply with strict disclosure requirements about their prospects.
The third area of concern to the DFSA is related to security services related to security codes. These include asset providers and advisory services.
The Chief Executive of the Dubai Financial Services Authority, Brian Sterwalt, stated the need for clear rules for security codes based on the decentralized accounting technology:
“The security token regulation proposal is an important milestone in creating a clear and safe pathway for issuers looking to raise capital in or outside the DIFC through DLT and similar technologies. And for those companies that intend to enter this market by doing business or providing financial services. ”
Sterwalt said the DFSA’s goal is to strike a balance between regulatory oversight and fostering innovation in digital assets. The regulator plans to publish laws on instrument markings and “exchange codes” later in 2021.
In fact, the city has become a center for crypto and blockchain technology in the Gulf region. Last February, Kiklabb, a government licensed company, began accepting payments for cryptocurrency.
In July 2020, the UAE introduced a blockchain-based Know Your Customer (KYC) platform.