The Dubai Financial Services Authority (DFSA) has made big changes to its Crypto Token Regulatory Framework in the Dubai International Financial Centre (DIFC). This is a big step towards better regulation of digital assets while still allowing for responsible innovation.
The updated framework makes it clearer for businesses that work in DIFC what the rules are, and it shows how the DFSA’s approach to regulating cryptocurrencies is changing after talking to a lot of people in the industry and with other regulatory bodies around the world.
A key change under the updated regime is the shift from a DFSA-led suitability assessment to a firm-led assessment. Firms providing financial services involving Crypto Tokens are now directly responsible for determining – on a reasoned and documented basis – whether each Crypto Token they engage with meets the DFSA’s suitability criteria. As a result, the DFSA will no longer publish a list of Recognised Crypto Tokens.
This reform is accompanied by enhanced safeguards for investors, refined conduct and operational requirements, and proportionate reporting obligations that better reflect the current state of the global digital assets market.
Charlotte Robins, Managing Director, Policy & Legal of the DFSA, said: “The DFSA’s enhancements to the Crypto Token regime reflect our progressive stance on innovation and proactive response to market developments and feedback. These updated rules provide firms with greater clarity and flexibility, and ensure that our regulatory crypto token regime remains aligned with international best practice. As digital assets continue to evolve, our objective remains clear – to maintain a transparent, and predictable regulatory framework that safeguards market integrity and enables sustainable and responsible market development in DIFC.”
