For many years, many crypto analysts have continued to call on financial regulators of nations to adequately regulate the affairs of the Blockchain space instead of placing a ban or restrictions on the space’s activities. Unfortunately, despite the calls of these crypto analysts, many nation’s financial regulators have refused to regulate Blockchain trading activities in their nations, as they have resorted to threats against the crypto space’s trading activities.
However, it appears that Dubai’s financial regulators- the Dubai Financial Services Authority (DFSA), have started to look into that directions. The DFSA has announced that they will be rolling out new regulations tailored towards the booming security token sector of the Emirate.
DFSA express keen interest in the affairs of the security token sector
In the official release of the financial watchdog, they believe that the new regulations, which will be rolling out soon, will guide traders of the security token in the right part, as they see a future in the booming financial space. According to the press release, the new policy framework will promote the growth of the security token sector, which they believe is gradually transforming the state’s investment space.
According to the DFSA, the new policy will protect the consumers and ensure that the security token companies are also protected. The financial watchdog has now released a questionnaire-like document to the public, which will be available for the next 30days, and they will be able to get feedback from the public.
The feedback will be to know which regulations would be most suitable for the security token space. One of the propositions of the DFSA is set to allow companies receive payments from their clients via security tokens. However, the DFSA is still open to receiving suggestions, as they are fully interested in the space’s growth.
The DFSA is optimistic about the new policies but wants public feedback
The DFSA, which has now released a proposed regulation mandate to the public, hopes that the new policy framework will improve integrity in the security token space. The financial regulatory body believes that it will foster innovation in the space if the new regulations are enacted.
The proposed new DFSA regulatory also features the recent AML/FT compliance regulations, which the financial regulators feel will guide the space players. In the report, the DFSA also confirmed that it had sought other financial regulators’ experience before it could come up with the new regulatory framework and believes that they are on the right part.
However, despite the new framework’s positivity, the financial regulators are very curious to know how their citizens feel about it. Surprisingly, despite the new regulations tailored towards security token trading, many crypto analysts are optimistic about a new regulatory framework tailored towards the country’s booming crypto space. However, the DFSA is yet to confirm or deny a new proposed guideline for the Blockchain space.