Dubai International Financial Centre introduces new law for digital asset transactions


  • The DIFC announced a new Digital Assets Law effective March 8, clarifying regulations for digital asset investors and users.
  • This law, with additional legal updates, aims to modernize the DIFC to attract international investments.
  • The initiative positions the DIFC as a leading center for digital asset innovation by incorporating blockchain technology.

The Dubai International Financial Centre (DIFC), a leading financial hub in the United Arab Emirates, announced this week the enactment of its new Digital Assets Law, effective March 8. 

This legislative development, alongside the new Law of Security and amendments to existing legislation, aims to align the DIFC with the latest technological advancements in international trade and financial markets. By providing clear legal frameworks for investors and users of digital assets, the DIFC seeks to maintain its competitive edge as a destination for global investment.

Operating within a tax-free special economic zone, the DIFC has its own legal system and courts, based on English common law, making it distinct from the wider UAE legal framework. The introduction of the Digital Assets Law is part of the DIFC’s strategy to enhance its legal infrastructure to support financial services and attract international businesses.

Framework for digital asset transactions

The DIFC’s Digital Assets Law was formulated after a comprehensive review of regulatory practices across various jurisdictions and following a period of public consultation last year. According to DIFC Chief Legal Officer Jacques Visser, this law marks a milestone as it clearly outlines the legal status of digital assets as property and details the methods by which these assets can be managed, transferred, and controlled by relevant parties.

The law’s comprehensive approach to defining digital assets and their legal handling is expected to make the DIFC a more appealing platform for digital asset and tokenization projects. By modernizing its laws to incorporate blockchain technology, the DIFC aims to stimulate innovation and growth within the digital asset sector.

Legal clarity for digital assets

The DIFC’s initiative to update its legal framework for digital assets reflects its commitment to providing a secure and transparent environment for digital asset transactions. The Digital Assets Law is designed to offer clarity and security to investors and users, ensuring the DIFC remains a leading financial center for emerging technologies. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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