UAE - Mubasher: The Dubai Financial Services Authority (DFSA) has introduced a regulatory framework for investment tokens.

The regulatory framework, which defines an investment token as either a security token or a derivative token, is the first of two phases of the DFSA’s digital assets regime, according to a press release on Monday.

The investment tokens regulatory framework applies to persons or entities interested in marketing, issuing, trading, or holding investment tokens in or from the Dubai International Financial Centre (DIFC) and authorised firms.

The DFSA is outlining proposals for other tokens not covered by the regulatory framework, which are forecast to focus on exchange tokens, utility tokens, and certain asset-backed tokens.

The Managing Director and Head of Strategy, Policy and Risk at the DFSA, Peter Smith, remarked: "Creating an ecosystem for innovative firms to thrive in the UAE is a key priority for both the UAE and Dubai Governments, and the DFSA. Our consultation on Investment Tokens enabled us to understand what firms were looking for in a regulatory framework and introduce a regime that is relevant to the market."