Shiba

Token

Shiba Inu

Dubai

<ul>
 <li>The recognition process for crypto tokens and funds investing in crypto tokens were addressed.</li>
 <li>Fund activities using crypto tokens were previously forbidden by the DFSA.</li>
</ul>
To improve and expand the legal environment for tokens within its special economic zone, the Dubai Financial Services Authority (<a href="https://thenewscrypto.com/dubais-financial-regulator-approves-xrp/" target="_blank" rel="noopener noreferrer nofollow">DFSA</a>) has announced revisions to its crypto token regime.
Companies with their headquarters in the Dubai International Financial Centre (<a href="https://thenewscrypto.com/dubais-difc-approves-new-digital-assets-law-to-enhance-financial-regulations/" target="_blank" rel="noopener noreferrer nofollow">DIFC</a>), a special economic zone in the UAE, are subject to the watchful eye of the Dubai Financial Services Authority (DFSA), an autonomous regulatory body in the country.
<h3 class="wp-block-heading" id="h-crucial-issues-addressed">Crucial Issues Addressed</h3>
In response to comments made in its January 2024 Consultation Paper 153, the DFSA announced on June 3 that it had updated its crypto token regime. The recognition process for crypto tokens and funds investing in crypto tokens were two of the crucial issues addressed by the changes.
The amendment changed the capacity to offer units of international and external funds that invest in recognized cryptocurrency tokens. Fund activities using crypto tokens were previously forbidden by the DFSA.
The capacity of domestic qualified investment funds to put money into unrecognized tokens was also impacted by the modifications. <a href="http://bitcoin.org" target="_blank" rel="noopener noreferrer nofollow">Bitcoin</a>, <a href="http://ethereum.org" target="_blank" rel="noopener noreferrer nofollow">Ethereum</a>, Litecoin, XRP, and Toncoin are the only five cryptocurrency tokens that the DFSA has acknowledged since the system came into effect.
The regulator acknowledged the significance of the recognition process but also explored the possibility of domestic funds investing up to 10% of their GAV in unrecognized cryptocurrencies.
A token’s recognition application cost $10,000 prior to the changes. According to the DFSA, a lot of people thought that charge was too exorbitant, especially for companies that wanted to be recognized for more than one token. On top of that, some people thought it was a “necessary burden.” The regulator took the comments into consideration and lowered the costs to $5,000 while also adding new requirements for stablecoins.&nbsp;
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Dubai Financial Services Authority (DFSA) Amends Crypto Token Regime

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