UAE: DFSA Switches ITL Application from Cohort to Open Window Format

Local and international organizations can now apply to the Innovation Testing License (ITL) Programme of the Dubai International Financial Centre (DIFC), a special economic zone in Dubai.

The Dubai Financial Services Authority (DFSA), the independent regulator of financial services conducted in or from the DIFC, announced on Friday that it has moved away from the cohort-based application process for the ITL.

From this Friday, the regulator said it will start accepting applications from interested firms.

The ITL, which was launched in 2017 by the DFSA, is a licensed regulatory sandbox which enables approved firms to test new and innovative financial products, services and business models in and from the DIFC.

A Regulatory Sandbox

Since its launch, the programme has hosted 67 firms out of the 130 applicants that have applied to join the programme.

“Starting this month, the DFSA will move to an open window format where interested firms may apply as soon as they are ready to test their product,” DFSA said in a statement on its website.

The independent regulator noted that companies willing to participate in the regulatory sandbox must provide a clear explanation of their planned business models and the proposed innovative products or services.

Justin Baldacchino, DFSA's Managing Director of Supervision, noted that the change in format testifies to the regulator’s commitment to supporting innovation in the economic zone.

Furthermore, the DFSA is seeking to pave the way for the future of finance in DIFC, Baldacchino said.

Baldacchino explained: “Innovation is necessary to enable companies to foster growth and discover new opportunities with an ever-changing consumer landscape.

“The ITL programme sits at the forefront of DFSA’s innovation agenda and serves as a platform to test new models that have the potential to emerge as successful ventures contributing to the financial services sector within the DIFC and Dubai.”

Dubai: A Business Hub

Dubai, the most populous city in the United Arab Emirates (UAE) and the capital of the Emirate Dubai, is a popular tourism and business destination.

Crypto trading platform, OKX, on Thursday confirmed that the company has received a provisional virtual assets license from the Dubai Virtual Assets Regulatory Authority (VARA) to facilitate trading for qualified investors through an approved list of products and services.

The top cryptocurrency exchange, Crypto.com, announced last month that it had gotten provisional approval for its Virtual Asset MVP License from VARA.

Crypto.com said the exchange will be issued a license under the specialised programme as soon as all mandated requirements are met.

Additionally, last month, an Israeli fintech company, Rapyd, opened a new office in Dubai in an effort to become the first Israeli company to be regulated in the UAE.

Furthermore, FxPro, a contract for difference broker, recently opened a new office in Dubai as part of its moves to expand its global presence.