The Dubai Financial Services Authority (DFSA) will begin work on establishing a regulatory framework for digital assets as stated in the business plan for 2021-2022.

DFSA operates in a special economic zone – the Dubai International Financial Center. The department is responsible for supervising and complying with requirements in accordance with international standards.

The future regulatory framework will expand the DFSA’s authority over digital asset issuers and related trading platforms. Also, the regulatory structure will include requirements for tokenized securities and cryptocurrencies.

“We will look to regulate a wide range of digital assets, including security tokens, utility tokens, the various types of exchange (or payment) tokens, such as cryptocurrencies [and] the firms that provide relevant services in these markets,” Peter Smith, the head of strategy, policy and risk at the Dubai Financial Services Authority (DFSA) told The National.

According to The National, the DFSA will submit two documents in 2021 to provide feedback on future regulations.