The Dubai Financial Services Authority (DFSA) has disclosed its readiness to announce policies to regulate the crypto industry. Widely circulated reports suggest that DFSA is on track to kick off plans to regulate cryptocurrencies. The highlight of the process to be used is slated in the regulator’s 2021/2022 business strategy.
A section of the document published earlier this week stated that the DIFC would initiate and monitor tokens and crypto-assets such as Bitcoin. According to Peter Smith of DIFC, the body will seek consultation and obtain feedback from the public twice before publishing the framework in the first half of 2021.
The DFSA hints at the proposed regulations
The body disclosed that the regulation would cover various digital assets such as security tokens and crypto-assets in the released document. The policies will also extend to operators and providers of services in the sector. The DFSA officer promised that the body would regulate the market “proportionally and thoughtfully” using the best practices applicable worldwide. Earlier, Abu Dhabi had established its regulation of cryptocurrencies in 2018. The Financial Services Regulatory Authority (FSRA ) also approved the listing of BitOasis and Digital Assets Exchange.
Recently, Ripple established a regional office in Dubai. Recently, the firm announced that Dubai was one of the places it was considering for the relocation of its headquarters as a result of the legal and regulatory battles the digital asset company is facing in the U.S. Presently, Ripple, its CEO, and co-founder are enmeshed in controversies surrounding the various allegations of fraudulent practices slammed against them by the SEC.
Other countries that also announced regulation of the crypto industry
Apart from UAE, some countries have also been coming up with regulations for cryptocurrencies following the industry’s continuous growth. Late last year, Ukraine and Pakistan began the parliamentary process of presenting the bill to regulate the crypto industry. The Nigerian government has also taken steps to empower its financial agencies and extend their power to cover the supervision of crypto transactions and prosecution of offenders.
The U.S. took the same step last year despite facing criticisms from crypto users. The government has, however, extended the period for feedback till Jan. this year. In 2020, Japan and Malaysia approved crypto exchanges and operators. Singapore also exempted selected crypto exchanges such as Coinbase, Binance, and others from the compulsory acquisition of license as enshrined in the New Payment Services act.
In 2020, the Spanish tax agency informed more than 60,000 crypto users about their tax obligations. The number had increased from just 15,000 a year earlier. March last year, Germany’s financial authority announced the requirements companies must meet to be certified for crypto operations. Other countries worthy of mention include Finland, China, India, and South Korea.
In Finland, the financial regulator announced the templates businesses who wanted to provide custody of cryptocurrencies should follow. India also took a similar step. However, there was a bill seeking to prohibit cryptos except the ones certified by the government. Last year, the Philippines warned its citizens to be careful about crypto transactions.