May 30, 2023

Dubai Financial Service Authority Intends To Update Crypto Tokens Laws

DFSA in Dubai

DFSA in Dubai

The Dubai Financial Services Authority (DFSA), the financial regulator of the Dubai International Financial Center (DIFC), plans to update its laws on crypto tokens, according to a Bloomberg report.

The regulatory changes, which may be issued later this year, come in terms of global regulators’ call for international standards to regulate the virtual asset industry. In this regard, Elisabeth Wallace, an associate director of DFSA, asserted the importance of intensifying talks between global organizers to avoid the bad actors exploiting loopholes in cryptocurrency rules, Cointelegraph reported.

According to Wallace, a lot of crypto companies tend to conduct a large number of activities under one umbrella and this is really worrying, affirming the need for more consultation among regulators on these few loopholes, which could be taken advantage of them by the bad actors.

Regulations for the crypto sector vary around the world as regulators continue to make their way in the growing industry.

Countries such as the UAE, Hong Kong, and Singapore are imposing favorable regulations on many of the big players in the market, while US regulators continue to crack down on cryptocurrency companies following the collapse of some well-known companies and exchanges, such as the cryptocurrency exchange FTX.

Moreover, DFSA enacted the laws governing crypto-tokens within the economic free zone known as the Dubai International Financial Centre, on November 1, intending to combat money laundering and terrorist financing, consumer protection, ensure market integrity, and preserve and secure the financial resources of service providers.

It is worth noting that the Virtual Asset Regulatory Authority (VARA) and the crypto laws it issues operate independently from the financial regulator and are subject to its own system of laws.

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