United

Security

Dubai

The Dubai International Financial Centre (DIFC), renowned as a premier special economic zone accommodating over 5,000 residents, has taken significant strides with the enactment of a groundbreaking digital assets law and security law, alongside amendments to existing legislation.&nbsp;
The DIFC operates under its unique legal system, rooted in English law, distinguishing itself as a hub for global financial activities. On the other hand, the United Arab Emirates (UAE)<a href="https://thecoinrise.com/uae-pushes-for-advanced-crypto-regulation-through-aml-rules/" rel="noopener noreferrer nofollow"> introduced stringent Anti-Money Laundering (AML) policies</a> in an attempt to bring in more advanced crypto regulations.
<h2 id="span-style-font-weight-400-dubai-dfic-seeks-to-align-policies-with-market-span">Dubai DFIC Seeks to Align Policies with Market</h2>
The impetus behind these legislative developments, as articulated in an official<a href="https://www.difc.ae/whats-on/news/difc-announces-enactment-of-new-digital-assets-law---new-law-of-security-and-related-amendments" rel="noopener noreferrer nofollow"> statement</a>, is to align the regulatory framework with the swiftly evolving landscape of international trade and financial markets.&nbsp;
These measures are aimed at providing legal certainty for investors and users of digital assets, marking a significant milestone in the realm of property law pertaining to digital assets.
Jacques Visser, the Chief Legal Officer of the DIFC Authority, hailed the legislation as groundbreaking, emphasizing its comprehensive delineation of the legal attributes of digital assets within the domain of property law.&nbsp;
<h3 id="span-style-font-weight-400-newly-enacted-digital-assets-law-span">Newly Enacted Digital Assets Law</h3>
The newly enacted Digital Assets Law, comprising seven pages of text along with appendices, represents a pivotal step towards establishing a robust regulatory framework for digital assets within Dubai International Financial Centre.
Additionally, a law amending multiple existing statutes to accommodate digital assets has been passed, further reinforcing the center’s commitment to adaptability and innovation.&nbsp;
Notably, amendments to the Law of Obligations have been made to equate electronic records with their paper counterparts, facilitating seamless integration of digital processes within legal frameworks.
Moreover, the Security Law 2024, replacing its predecessors from 2005 and 2019, signifies a significant overhaul, incorporating the Financial Collateral Regulations and aligning with international best practices.&nbsp;
<h2 id="span-style-font-weight-400-dedication-to-fostering-conducive-environment-for-crypto-span">Dedication to Fostering Conducive Environment for Crypto</h2>
Modeled on the United Nations Commission on International Trade Law’s Model Law on Secured Transactions, this comprehensive legislation reflects Dubai DIFC’s dedication to<a href="https://thecoinrise.com/okx-granted-conditional-approval-in-dubai/" rel="noopener noreferrer nofollow"> fostering a conducive environment for global financial activities</a>.
The DIFC’s proactive approach to regulatory evolution is evident through its recent updates to cryptocurrency regulations in 2022 and the provision of subsidized licenses for artificial intelligence and Web3 companies in 2023.&nbsp;
<h3 id="span-style-font-weight-400-dubai-dfic-s-impressive-performance-span">Dubai DFIC’s Impressive Performance</h3>
These initiatives have contributed to the Dubai DFIC’s impressive financial performance, with a net profit of $203 million in 2023, representing a notable 45% increase from the previous year.
Moreover, a 34% surge in new registrations, accompanied by an influx of hedge funds and businesses from Europe and the United States, underscores the DIFC’s growing prominence as a global financial powerhouse.
While hailed as pioneering, the DIFC’s Digital Assets Law is not the first of its kind globally, with jurisdictions like China, Singapore, and Hong Kong having previously addressed the issue of crypto as property through judicial rulings.
The post <a href="https://thecoinrise.com/dubai-difc-introduces-new-digital-asset-law-details/" rel="noopener noreferrer nofollow">Dubai DIFC Introduces New Digital Asset Law: Details</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Dubai DIFC Introduces New Digital Asset Law: Details

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