Dubai Financial Services Authority updates its cryptocurrency token regime

The Dubai Financial Services Authority (DFSA) has announced revisions to its cryptocurrency token regime to strengthen and advance its token regulatory framework within its economic zone. On June 3, the DFSA announced modifications to its cryptocurrency token regime to reflect changes in Consultation Paper 153, which was released in January 2024. This revision involves several important areas, including funds investing in cryptocurrency tokens and the identification process for cryptocurrency tokens. In terms of funds, this amendment affects the ability to provide investment in external and foreign fund units that invest in recognized cryptocurrency tokens. Previously, the DFSA restricted fund activities involving cryptocurrency tokens.