Dubai lawmakers look forward to receiving public feedback on Money 4.0

Dubai lawmakers look forward to receiving public feedback on Money 4.0

The financial regulator in Dubai has issued a 30-day deadline to consult the public on security token regulations.

The Dubai Financial Services Authority, or DFSA, is continuing its efforts to create a standardized framework for Money 4.0 regulations in the megacity.

According to a DFSA press release released on Monday, Dubai’s financial regulator has urged members of the public to submit comments on their proposed regulations for Money 4.0 considered. is a security token.

The public comment phase of this process will last for 30 days and will be part of DFSA’s methods of establishing the “Security Token Regulatory Framework”.

Dubai’s security token infrastructure focuses on providing regulatory clarity across three main areas of concern. The first part deals with the creation of a regulatory framework for the offering and trading of digital securities to investors including retail buyers.

DFSA is prioritizing quality control protocols to protect retail investors with security token issuers from strict disclosure requirements in their prospectus.

DFSA’s third area of ​​interest focuses on support services related to security tokens. These include property custody providers and advisory services.

Commenting on the need for clear-cut regulations for security tokens based on decentralized ledger technology, DFSA CEO Bryan Stirewalt said:

“The proposed security token regulation is an important milestone in opening a clear and sure path for issuers looking to raise capital in or from the DIFC using DLT and technology. self. And for those companies that intend to enter this market, by conducting or providing financial services.”

According to Stirewalt, the goal of DFSA is to strike a balance between regulatory oversight and drive innovation in the digital asset space. The regulator plans to announce the law for utility tokens and “exchange tokens” by the end of 2021.

Indeed, the city has become a hub for Money 4.0 and blockchain technology in the Gulf. Back in February, Kiklabb, a state-owned licensing company, began accepting payments in Money 4.0.

In July 2020, the United Arab Emirates government launched the Know Your Customer platform based on blockchain.