The FSRA is proposing to adopt a "risk-based and proportionate approach to FRT issuance in response to industry demand, based on appropriate regulatory requirements that incorporate the necessary safeguards to ensure that FRT issuers operate in a safe and sound manner and informed by current practices in leading jurisdictions."  

Issuance of FRTs would constitute a new "Regulated Activity, distinct from the issuance of Stored Value within the Financial Services and Markets Regulations 2015, with commensurate conduct of business and prudential requirements."

The consultation period closes on 3 October 2024.

This newly implemented legislative structure is designed to provide a "comprehensive framework for DLT Foundations and Decentralised Autonomous Organisations (DAOs), enabling them to operate and issue tokens recognising the unique needs of the Blockchain industry." 

The DAL lays down the foundational legal characteristics of a Digital Asset as a matter of property law. It addresses issues such as how one acquires and transfers title to a digital asset, how a digital asset should be characterised as a matter of property law, and the circumstances under which one can sue a third party for interfering with the use of a digital asset.

Deadline for comments is 5 November 2023.

The paper seeks comments on the DFSA's proposals to make several amendments to its policy framework, including proposals in relation to the Crypto Token regime that will result in changes to the DFSA Rulebook.

Deadline for comments is 26 May 2023.

The first phase of the CBDC Strategy is expected to be completed over the next 12 to 15 months and comprises three major pillars. The first is the soft launch of project mBridge, a collaboration between the Bank for International Settlements, the Hong Kong Monetary Authority, Bank of Thailand and People's Bank of China, to facilitate real value cross-border CBDC transactions for international trade settlement. 

The second pillar is proof-of-concept work for bilateral CBDC bridges with India, and the third pillar is proof-of-concept work for domestic CBDC issuance covering wholesale and retail usage. 

H.E. Khaled Mohamed Balama, Governor of the Central Bank of UAE, said: “The launch of our CBDC strategy marks a key step in the evolution of money and payments in the country. CBDC will accelerate our digitalisation journey and promote financial inclusion.”

The central banks signed a memorandum of understanding on 15 March 2023 to explore interoperability between the CBDCs of both countries and to "jointly conduct proof-of-concept  and pilot(s) of bilateral CBDC bridge to facilitate cross-border CBDC transactions of remittances and trade." 

The regulatory framework is focused on the risks that each virtual asset activity presents to the market, and seeks to provide virtual asset service providers (VASPs) with a "clear framework of rules which apply to their particular operations and business models, while maintaining a baseline market standard of compliance across core regulatory domains."

VASPs that fulfil VARA's licensing requirements will be required to comply with four Compulsory Rulebooks:

Company Rulebook;

Compliance & Risk Management Rulebook;

Technology & Information Rulebook; and 

Market Conduct Rulebook.

Additionally, seven activity-specific Rulebooks have been developed to cater for risks associated with the provision of each virtual asset activity:

Advisory Services Rulebook;

Broker-Dealer Services Rulebook;

Custody Services Rulebook;

Exchange Services Rulebook;

Lending & Borrowing Services Rulebook;

Payments & Remittances Services Rulebook; and 

Management & Investment Services Rulebook.

VASPs will be required to comply with each activity Rulebook only if they are licensed by VARA to offer the activity.