Dubai Issues Rules for Security, Derivatives Tokens

The regulator also plans to roll out rules for exchange and utility tokens as well as stablecoins.

Oct 26, 2021 at 9:50 a.m. UTC
Updated Oct 26, 2021 at 2:12 p.m. UTC

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Dubai’s Financial Services Agency announced 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 from exchange tokens or cryptocurrencies. Security tokens are blockchain-based representations of underlying assets. 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.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Trending

1
CoinDesk - Unknown
More Downside Ahead for Bitcoin, Says Top Valkyrie Analyst

“It’s a marathon, not a sprint,” Josh Olszewicz, head of research at Valkyrie, said about bitcoin’s price recovery, on CoinDesk TV’s “First Mover” program.

“It’s a marathon, not a sprint,” Josh Olszewicz, head of research at Valkyrie, said about bitcoin’s price recovery, on CoinDesk TV’s “First Mover” program.

CoinDesk - Unknown
2
CoinDesk - Unknown
DeFi Trading Hub Uniswap Surpasses $1T in Lifetime Volume

Although traders still tend to favor centralized exchanges, the DEX is continuing to expand across Web 3.

Although traders still tend to favor centralized exchanges, the DEX is continuing to expand across Web 3.

CoinDesk - Unknown
3
CoinDesk - Unknown
Crypto Crime, Whiskey and Always Twirling, Twirling Towards Freedom

The best and brightest people can make truly stupid decisions and terrible predictions. What can we learn from them?

The best and brightest people can make truly stupid decisions and terrible predictions. What can we learn from them?

CoinDesk - Unknown
4
CoinDesk - Unknown
Bitcoin registra ocho semanas de pérdidas, pero el indicador de sentimiento sugiere un alza

Los indicadores de sentimiento tocaron fondo el lunes.

Los indicadores de sentimiento tocaron fondo el lunes.

CoinDesk - Unknown