The financial regulators in Dubai have enacted a one month window for public comments on security token guidelines.
The Dubai Financial Services Authority is carrying on with its attempts to design a standardized framework for digital asset regulations in the city.
Dubai Financial Services Authority & Security Tokens
As per a Dubai Financial Services Authority press release issued recently, the financial regulator of Dubai has called on members of the public to come up with comments on its suggested regulations for digital assets viewed as security tokens.
The public comments stage of the process will last for thirty days and is part of the modalities for commencing the DFSA’s “Framework for Regulating Security Tokens.”
Remarking on the requirement for comprehensible regulations for security tokens based on DLT, Bryan Stirewalt, the chief executive of DFSA mentioned:
“The proposal for regulation of security tokens is a key milestone in paving a clear and certain path for those issuers who wish to raise capital in or from the DIFC using DLT and similar technology. And for those firms who intend to be involved in this market, by conducting or providing financial services.”
As per Stirewalt, the DFSA’s objective is to create an equilibrium between regulatory surveillance and advancing innovation in the virtual asset domain. The regulatory agency intends to bring out laws for utility tokens and exchange coins later this year.
Unquestionably, the city has become a center for digital asset and blockchain technology in the Gulf region.