DFSA next phase of its Tokenisation Regulatory Sandbox

The Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), has announced the next phase of its Tokenisation Regulatory Sandbox, beginning engagement with firms selected to join its Innovation Testing Licence programme - the DFSA's regulatory sandbox that allows entities to test innovative financial products and services under a controlled environment.

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The DFSA continues to differentiate itself through initiatives that support innovation across the FinTech ecosystem. The Authority launched its Innovation Testing Licence in 2017, and remains focused on building an adaptive, forward-looking market that is aligned with the emerging needs of both traditional and non-traditional financial institutions, investors, and entrepreneurs.

In 2021, the DFSA introduced its first-of-its-kind Investment Token regime to regulate tokens used as investment instruments, and implemented an enhanced Crypto Token regime in 2022 as a second-phase framework for classifying, recognising, and governing crypto tokens. This was followed in June 2024, when the DFSA further refined its approach with amendmentsincluding streamlined token-recognition criteria and the first approvals of stablecoins - underscoring its commitment to adaptive, responsible innovation.