Share this article
Dubai Issues Rules for Security, Derivatives Tokens
The regulator also plans to roll out rules for exchange and utility tokens as well as stablecoins.
Updated May 11, 2023, 5:12 p.m. Published Oct 26, 2021, 9:50 a.m.
Make us preferred on Google
Dubai’s Financial Services Agency announced rules for “investment tokens,” which can represent securities or be derivatives.
- The agency defines investment tokens as cryptographically secured tokens that have some of the same attributes as securities and derivatives, and are issued, transferred and stored using distributed ledger technology.
- These tokens are different from exchange tokens or cryptocurrencies. Security tokens are blockchain-based representations of underlying assets. Derivatives tokens derive their value from other tokens.
- The framework, which is not detailed in the announcement, applies to any firms that want to issue or trade investment tokens in the emirate’s Dubai International Financial Centre, and accredited firms that wish to offer financial services related to investment tokens.
- The DFSA is also planning to roll out a framework for exchange and utility tokens, as well as some asset-backed tokens such as stablecoins, according to the announcement. The agency will issue a consultation paper on this regulation in the fourth quarter.
- The new rules are based on a consultation paper that was issued by the agency in March.
Read more: Security Tokens Are Back and This Time It’s Real
STORY CONTINUES BELOW
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
El Salvador's central bank buys $50 million of gold as government keeps adding bitcoin
The bitcoin-friendly nation's central bank now holds over $360 million of the yellow metal, while the government, led by President Nayib Bukele, has bitcoin holdings worth $635 million.
What to know:
- El Salvador's central bank added $50 million of gold to its reserves on Thursday.
- The country also made its usual purchase of 1 bitcoin, bringing the government’s holdings to 7,547 coins, worth $635 million.
Top Stories
