• Dubai is showing support for crypto.
• Dubai regulator, DFSA established a regulation framework for investment tokens.
• This is a part of Dubai’s effort in stimulating digital tokens.

The crypto market is growing and more countries are supporting it. Dubai is one such country. Dubai Financial Services Authority (DFSA), recently released a statement stating that they have established a regulatory framework to allow investment tokens.

To make it clear: DFSA, an independent regulator for Dubai, is the case. It oversees the regulation of financial services firms that wish to be registered in Dubai. It is responsible for licensing and regulating these services and products.

According to DFSA the decision was made as part of its efforts to encourage the financial and technological digital environment while also meeting market demands and complying with the required requirements.

Additionally, reports say that the regulatory framework from DFSA sees investment tokens as “a Security Token or Derivative Token”. Reports also note that this is DFSA’s first step towards its Digital Assets Regime, which shows the suggestions made in Consultation Paper 138, which was published in March 2021. This paper also aims to know the public’s input regarding DFSA’s plans for regulating Security Tokens.

Important to remember that Dubai already saw the potential for digital assets well before. By allowing cryptocurrency businesses to establish themselves in the DMCC Freezone, Dubai showed its support for this industry. Dubai was also home to the most important crypto expos. These events helped both crypto lovers and entrepreneurs expand their networks.

Dubai, in fact, is slowly but surely letting the rest of the world know it supports the cryptocurrency industry by welcoming them into its homes.

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