Dubai International Financial Center (DIFC), a tax-free special economic zone in the United Arab Emirates, announced the enactment of a new digital asset law earlier this week.
Together with the new securities law and related amendments to existing laws, the enactment aims to ensure that the DIFC keeps pace with technological developments in international trade and financial markets and provides legal clarity to investors and users of digital assets.
DIFC’s Digital Assets Act will come into effect on March 8, following a review of the regulatory approaches taken by various jurisdictions around the world and a public consultation period held last year.
Established to promote financial services and attract international investment, DIFC operates its own legal system and courts, independent of the UAE and based on English common law.
“We believe this bill is groundbreaking as the first legislative enactment to comprehensively define the legal nature of digital assets as a matter of property law and prescribe how stakeholders can control, transfer and deal with digital assets.” DIFC Chief Legal Officer Jacques Visser said in a statement:
“The DIFC’s move to modernize property and securities laws for blockchain capabilities could support the growth of digital assets and tokenization initiatives by attracting market participants to the free zone,” credit rating agency Moody’s told The Block.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.