The new strategic plan for the Dubai Financial Services Authority (DFSA) has just reached the public eye. The DFSA plans to increase the reputation of the Dubai International Financial Centre (DIFC) – a unique economic zone with its own regulations and trading rules – as a global financial and crypto business area.
The Chairman of the DFSA commented that there are essentially four major strategic points to be covered, including financial crime fighting, better client protection strategies, and better integration of recommendations issued by the Financial Action Task Force (FATF) with the help of the United Arab Emirates. Furthermore, the DFSA wants to follow through with the Paris Climate Agreement.
This new regulatory strategy comes with an up to date list of DFSA “Recognized Crypto Tokens,”, including big ones like Bitcoin, Litecoin, and Ethereum. From last November, only those crypto assets found on the list are allowed for transactions within the DIFC.
Meanwhile, Dubai, in an attempt to become the next big crypto hub, has revealed its Virtual Asset Law (VAL) that establishes the Dubai Virtual Assets Regulatory Authority (VARA). The latter of which will be in charge of overseeing the crypto industry and its progress in time.
Dubai currently sports very low taxes and electricity costs, which makes it a favorable spot for cryptocurrency miners, and other crypto-related businesses. It’s growing popularity, as well as that of the Dubai International Financial Centre, has attracted many to its shores in search of a local license.