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ARTICLE · 13 DECEMBER 2022

Regulation Of Crypto Tokens

The UAE has long positioned itself at the forefront of innovation in the region and is now strengthening its status by becoming the hub for crypto investors in the Middle East.

United Arab EmiratesTechnology

Introduction

The UAE has long positioned itself at the forefront of innovation in the region and is now strengthening its status by becoming the hub for crypto investors in the Middle East. Following the footsteps of the regulators in the ADGM, DMCC and mainland, the DFSA has published its Regulation of Crypto Tokens (the "Crypto Token Regime") which sets out a regulatory regime for persons seeking to provide financial services in respect of Crypto Tokens. This regime came into force on November 1st, 2022, presenting an additional jurisdiction in the UAE in which cryptocurrency trading and exchange activities may take place.

The Crypto Token Regime aims to set guidelines that ensure investors are adequately protected while "providing an advanced virtual asset ecosystem in terms of organization, governance and security". Below is an overview of the main provisions introduced by this legal and regulatory framework.

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