When it comes to cryptocurrency and blockchain technology adoption, Dubai has been making its presence known. Dubai is now making all the efforts to come up with a unique and most reliable framework around cryptocurrencies. It is using its legislative expertise and also seeking advice from the public in order to introduce regulations that are strict as well as flexible for the crypto-users in Dubai.
It was announced towards the beginning of the year 2021 that the Dubai Financial Services Authority (DFSA) was aiming to adopt and regulate cryptocurrencies in the city.
It was confirmed that the Dubai Financial Services Authority (DFSA) had designed a framework around the adoption of cryptocurrencies. The local reporting sources have now confirmed that the DFSA is now seeking feedback and views from the locals before it proceeds with it.
The above statement was made by the Dubai Financial Services Authority (DFSA) on Monday, March 29, 2021 through a press release. In the press release, DFSA has revealed that it has invited the public to go through the policies and rules they have added in the framework and share their views around it.
The DFSA has confirmed that the process of gathering feedback from the public on the new cryptocurrency framework will last for 30 days.
The regulatory authority has also confirmed that this process is also a part of the modalities that it is using in order to institute Dubai Financial Services Authority’s framework.
The DFSA has also revealed that the title of its framework around cryptocurrencies is “Framework for Regulating Security Tokens”.
The DFSA has confirmed that the current infrastructure it has designed addresses three concerns of three major areas.
Out of the three, the first part of the infrastructure focuses on creating a framework that is regulated. The regulated framework is essential for trading and offering digital securities to the retail buyers as well as investors.
The second part of the infrastructure deals with the quality assurance and quality control sector. It prioritizes the protocols that revolve around the quality of the system in order protect the retail investors. It does this by implementing disclosure requirements that are strict and are must for the security token issuers to comply with.
The third part of the infrastructure deals with the support services that are must for the flow of security tokens. The major entities that need a lot of support services include advisory services and custody providers.
Bryan Stirewalt, who is the CEO at the DFSA also commented on the implementation of the new regulatory framework readied by the authority.
He stated that DFSA is aiming to bring balance between promoting the innovations that are currently being experiencing in the financial technology and the regulatory oversight with this framework.