Dubai's financial regulator plans to work on the development of a regulatory framework to regulate the country's crypto sector, the institution has announced through its 2021-2022 business plan.
In particular, the Dubai Financial Services Authority (DFSA) has said it will develop "a regulatory regime for digital assets (such as tokenized securities and cryptocurrencies)."
"The DFSA is committed to remain 'open for business' with respect to innovation in the financial services sector and we continue to explore how our regulatory regime can accommodate new and innovative business models."
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The regulator has not provided details on how it plans to create this regulatory framework, however, local publication The National has reported the DFSA plans to publish two consultation papers requesting comments on its proposed standards during the first and second quarters of this year.
The regulator's decision could directly affect Ripple, which has recently set up a regional base in Dubai. In addition, the company CEO Brad Garlinghouse is considering the UAE as a possible candidate for its new headquarters if it eventually decides to leave the US as a result of regulatory pressure.