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Dubai to introduce crypto regulations framework soon

TL;DR

TL;DR Breakdown

  • A financial authority in Dubai is looking to implement new crypto regulations.
  • The regulation would cover digital assets like Bitcoin and tokenized securities.

Financial regulators in Dubai are looking to enact local crypto regulations in the country. The body, Dubai Financial Services Authority (DFSA), which oversees the oil-rich region’s special economic zone, made this known recently.

According to the statement, the new crypto regulations would serve as a guideline for different digital assets. This is part of the agency’s 2021–2022 business plan, which aims to meet the Dubai International Financial Centre (DIFC).

DFSA says the new framework would now take issuers of these digital assets into consideration plus other trading platforms. The body also said digital assets are recognized to be tokenized securities and crypto-assets like BTC. The body noted that it would also continue to implement various regulations that would support various business models.

To allow input from the market participants, DFSA would publish two consultation papers in which it would be requesting feedback from members of the public. A top executive of the agency added that these consultation papers would be published in the first two quarters of 2021.

Different crypto regulations for different countries

Countries across the globe are implementing varying crypto regulations in their jurisdictions. For example, in the United States, financial authorities are implementing stringent crypto regulations that would mandate crypto exchanges and wallets to enforce Know-Your-Customer (KYC) rules.

The authorities in the country are citing the need to curb money laundering activities and prevent the funding of illegal activities as why this crypto rule is being enacted.

In the UK, the authorities there have warned their citizens against investing in cryptocurrencies. According to the Financial Conduct Authority (FCA), investors in this field should be prepared to lose all their money.

FCA cites the level of volatility attached to the crypto market as one reason for this advice.

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Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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