Dubai DFSA Regulator To Allow Local Crypto Investment Funds
Dubai’s proactive approach towards crypto regulation and its commitment to nurturing the sector has enabled the city to affirm its position as a hub for virtual asset innovation and investment.
The establishment of The Dubai Virtual Assets Authority (VARA), an affiliate of the Dubai World Trade Centre Authority (DWTCA), which was established in February 2022 by the UAE’s Virtual Assets (VA) Law as the competent entity in charge or regulating, supervising and overseeing all Virtual Assets Service Providers (VASPs) and virtual assets has provided the crypto industry some much-needed operational clarity and security to businesses, who are now driving the innovations and investments into the space.
Recently, Dubai Financial Services Authority (DFSA) is set to update its crypto assets regulatory framework with new amendments, covering crypto assets, crypto custody DeFi, stablecoins, crypto investment funds, crypto in insurance, money laundering and terrorist financing.
The consultation paper seeks public feedback by March 3rd, 2024. The changes will focus on crypto tokens, not security tokens or investment tokens.
The consultation paper is of interest to authorized market institutions, operators of alternative trading systems, firms offering advice, investment funds, issuers or creators of crypto tokens.
The DFSA also plans to decrease its crypto token registration fee by 50%, now priced at $5,000 instead of $10,000.
The UAE is obviously moving forward with its crypto asset regulations and framework, yet ensuring they are adherent to FATF and money laundering terrorism financing guidelines.
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