Dubai Issues New Rules for Security, Derivatives Tokens

Dubai’s Financial Services Agency announced new rules for “investment tokens,” which can represent securities or be derivatives. The agency defines investment tokens as cryptographically secured tokens that have some of the same attributes as securities and derivatives, and are issued, transferred and stored using distributed ledger technology. These tokens are different to exchange tokens, or […]

Don't got time to read? Listen it & multi task

Dubai’s Financial Services Agency announced new rules for “investment tokens,” which can represent securities or be derivatives.

  • The agency defines investment tokens as cryptographically secured tokens that have some of the same attributes as securities and derivatives, and are issued, transferred and stored using distributed ledger technology.
  • These tokens are different to exchange tokens, or cryptocurrencies. Security tokens are blockchain-based representations of underlying assets, and derivatives tokens derive their value from other tokens.
  • The framework, which is not detailed in the announcement, applies to any firms that want to issue or trade investment tokens in the emirate’s Dubai International Financial Centre and accredited firms that wish to offer financial services related to investment tokens.
  • The DFSA is also planning to roll out a framework for exchange and utility tokens, as well as some asset-backed tokens such as stablecoins, according to the announcement. The agency will issue a consultation paper on this regulation in the fourth quarter.
  • The new rules are based on a consultation paper that was issued by the agency in March.

Read more: Security Tokens Are Back and This Time It’s Real

Latest articles by Glenn Nasta

PEGA Pool is the Powered By Sponsor for Mining Disrupt 2023, Supporting Greener Future for Bitcoin Mining
Codego Crypto Gift Cards
Codego Launches the New Era of Crypto Gift Cards
HJHRE Reports HJH Investments’ First Quarter 2023 Results
Introducing DexCheck: The Future of AI-Enhanced Analytics in Crypto and NFT Markets
Introducing DexCheck: The Future of AI-Enhanced Analytics in Crypto and NFT Markets
Translate »