The special economic zone DIFC in Dubai has set a leading example for crypto regulation in the UAE with a new digital assets law that would regulate the sector.
The UAE crypto sector is set to see regulations through a new digital assets law. The Dubai International Financial Centre (DIFC) created and passed the law and published a press release on it. The DIFC, a special economic zone, has amended existing regulations and created a new security law as well. The press release recognized the world’s digital assets regime and its importance.
It was important to keep up with the latest developments in the financial markets and international trade, said the DIFC. Moreover, it also mentioned that the law would provide legal certainty to investors and users in the UAE crypto sector.
The DIFC’s Chief Legal Officer, Jacques Visser, said, “We consider this legislation to be groundbreaking as the first legislative enactment to comprehensively set out the legal characteristics of digital assets as a matter of property law.” Further, he described how the law would highlight rules for parties to control, transfer, and deal with digital assets.
Blockchain technology and its potential use cases also featured extensively in the DIFC’s words. The institution claimed its applications across a wide number of use cases will only increase in the future.
Meanwhile, the DIFC Law of Security replaced an earlier 2005 legislation. The new law will broadly improve the DIFC’s securities regime, it noted.
The UAE, a crypto-friendly country, has taken multiple initiatives to benefit the industry. In 2023, a unique crypto zone opened in the country. At the same time, new metrics revealed a growing number of its citizens were investing their savings in crypto assets. As a result, crypto regulations in the UAE have become equally important.
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