- These new laws aim to provide legal clarity for investors in digital assets, aligning with international standards.
- The new legislative framework builds on ongoing efforts to update cryptocurrency regulations.
Dubai’s Dubai International Financial Centre (DIFC) has introduced groundbreaking legislation, passing comprehensive digital asset and security laws alongside amendments to existing regulations.
With a focus on adapting to the rapid evolution of global financial markets, these laws aim to establish legal certainty for investors and users of digital assets, marking a significant milestone in the legal landscape of the digital economy.
Jacques Visser, the Chief Legal Officer at DIFC Authority, mentioned: “DIFC is excited to announce the enactment of its Digital Assets Law. 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.”
“At the same time, we are also enacting a new Law of Security, replacing the 2005 law. The revised regime is modeled on the UNCITRAL Model of Secured Transactions. It significantly enhances DIFC’s securities regime to keep pace with international developments in this field and to ensure DIFC remains at the forefront of best practice.”
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Legal Framework Of Digital Assets Law
The Digital Assets Law defines digital assets’ legal characteristics as property. Notably, this legislation represents a pioneering effort globally to establish a comprehensive legal framework for digital assets within property law.
Replacing a previous law dating back to 2005, the Security Law 2024 incorporates international best practices, including elements of the United Nations Commission on International Trade Law’s Model Law on Secured Transactions.
The recent legislative developments build upon DIFC’s ongoing efforts to adapt its regulatory framework to emerging trends in finance and technology. Notably, the center updated its cryptocurrency regulations in 2022 and initiated subsidies for licenses targeting artificial intelligence and Web3 companies in 2023.
While Dubai’s DIFC claims the distinction of pioneering comprehensive digital asset legislation, it’s worth noting that other jurisdictions, including China, Singapore, and Hong Kong, have also addressed the legal status of digital assets in recent years.
