- The enactment of the Digital Assets Law by the Dubai International Financial Centre (DIFC) demonstrates a proactive approach towards providing legal certainty to investors and users of digital assets.
- By defining the legal characteristics of digital assets under property law and establishing regulations for their control, transfer, and management, the DIFC aims to instill confidence among market participants.
This week, the United Arab Emirates’ tax-free special economic zone, Dubai International Financial Centre (DIFC), announced the adoption of its new Digital Assets Law.
The enactments, which include a new Law of Security and related revisions to existing legislation, are intended to give investors and users of digital assets legal certainty while also assisting the DIFC in keeping up with technology advancements in international commerce and financial markets.
The DIFC’s Digital Assets Law, which went into force on March 8, was developed in response to an assessment of the regulatory strategies used by numerous international jurisdictions and a public consultation period conducted last year.
The DIFC, which was created to advance financial services and draw in foreign investment, has its own courts and judicial system that are independent of the larger UAE and are founded on English common law.
In a statement, DIFC Chief Legal Officer Jacques Visser said, “We consider this legislation to be groundbreaking as the first legislative enactment to comprehensively set out the legal characteristics of digital assets as a matter of property law, and to provide for how digital assets may be controlled, transferred, and dealt with by interested parties.”
The ratings firm Moody’s informed The Block that “the DIFC’s move to modernize its property and securities laws for blockchain capabilities could support growth in digital asset and tokenization initiatives by attracting market participants to the free zone.”
DIFC Propels Digital Innovation with Groundbreaking Digital Assets Law
In a significant move towards fostering innovation and bolstering its position as a global financial powerhouse, the Dubai International Financial Centre (DIFC) has introduced its pioneering Digital Assets Law. Aimed at providing legal certainty to investors and users of digital assets, the legislation marks a milestone in comprehensively defining the legal characteristics of digital assets under property law.
Developed through meticulous assessment of international regulatory strategies and public consultation, the Digital Assets Law underscores DIFC’s commitment to staying ahead of technological advancements in global commerce and financial markets. With its implementation on March 8, DIFC solidifies its role as a frontrunner in facilitating digital innovation and attracting market participants to its thriving tax-free special economic zone.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.