Dubai’s ruler announced the development of a regulating and licensing organisation in order to become a “major player” in the global digital asset market.
The Emirate of Dubai is one of the United Arab Emirates’ seven emirates that make up the country (UAE). Abu Dhabi, another emirate, has been aggressive in its pursuit of becoming a crypto hub. The Securities and Commodities Authority of the United Arab Emirates said on Wednesday that it was close to releasing a regulatory framework for digital assets.
The DFSA (Dubai Financial Services Authority), the emirate’s financial hub’s regulator, released its regulatory framework for crypto tokens, or cryptocurrencies. The proposed limits are meant to protect investors, according to the DFSA’s consultation document, and apply to organisations engaged in promoting, issuing, trading, or creating crypto tokens in or from the Dubai International Finance Centre.
Because of their extreme volatility, speculative character, lack of value, and regulatory control, central banks around the world have been hesitant to embrace cryptocurrencies. Cryptocurrencies are also not recognised as legal cash by the UAE Central Bank.