Dubai Financial Services Regulatory Authority Updates its Cryptocurrency Token System

Dubai Financial Services Authority (DFSA) has announced revisions to its cryptocurrency token regime to strengthen and enhance its regulatory framework for tokens within its economic zones. On June 3rd, DFSA stated that it has amended its cryptocurrency token regime to reflect changes in Consultation Paper 153, which was published in January 2024. The revisions cover several key areas, including funds investing in cryptocurrency tokens and the process of identifying cryptocurrency tokens. In terms of funds, the amendments impact the ability to offer units in external and foreign funds that invest in recognized cryptocurrency tokens. Previously, DFSA had imposed restrictions on fund activities involving cryptocurrency tokens.