DFSA Publishes List of "Recognised Crypto Tokens" as Changes Take Effect

The Dubai Financial Services Authority (DFSA) announced its initial list of 'Recognised Crypto Tokens' on Tuesday, changing its current regulatory regime concerning the crypto industry. The list includes Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term (BTC), Ethereum (ETH), and Litecoin (LTC).

The DFSA defines a cryptocurrency token as a token that is used as a medium of exchange or payment or provides a right in another asset that meets the requirements. However, the regulator does not consider non-fungible tokens, utility tokens, and central bank digital currencies (CBDCs) as potential crypto tokens.

As of November 1, only recognized crypto tokens can be transacted within or from the Dubai International Financial Center (DIFC). A similar scheme is used by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM).

The DFSA began its foray into regulating the cryptocurrency sector by introducing investment tokens in September 2021. These differ from the currently recognized crypto assets and include security assets (i.e., shares, certificates, structured products) and derivative tokens (i.e., futures and options).

Dubai Wants To Become The New Crypto Hub

Dubai is taking more steps to become an international hub Hub A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method Read this Term to attract experts and cryptocurrency companies. Earlier this year, the Virtual Asset Law (VAL) was introduced, establishing the independent Dubai Virtual Assets Regulatory Authority (VARA) to further oversee local industry development.

A mix of low taxes and some of the lowest electricity costs in the world make Dubai a popular spot for cryptocurrency mining. Miners are not even bothered by high temperatures, which in this part of the world can exceed 42°C in summer.

On the other hand, the high temperatures and ample sunshine make it possible to exploit the potential of renewable energy. It is in Dubai that the largest solar power plant is located. Moreover, the UAE believes that by 2024, 20% of its electric power will be from renewable sources.