The DFSA is calling on innovative technology-driven firms to apply to its next cohort, with successful applicants then being able to apply to the regulator's regulatory sandbox, which is known as the Innovation Testing Licence (ITL) Programme.

Applicants must explain their planned business model and the proposed innovative product or service.

Results will be announced on 16 December, and applications to the ITL will then be due by 17 January 2020.

Since the inception of the ITL Programme, the DFSA has accepted 20 companies into the cohort process, representing diverse business models from across the world. These have included digital Sukuk issuances using smart contracts, tokenised securities and debt offerings, tokenised crowdfunding, and the use of AI in credit analysis.

Bryan Stirewalt, Chief Executive of the DFSA, said:

"The ITL Programme continues to provide the right balance between supporting financial innovation and maintaining the safety of the financial system and of the users of financial services. The ITL serves as a platform to safely test innovative financial technologies that have the potential to emerge as successful ventures and contribute to the financial services sector in Dubai and the UAE. The continued growth in the popularity of the programme is a testament to its success."

Further details regarding the ITL and cohort applications can be found in the FinTech section of the DFSA’s website.

The new guidance clarifies the application of ADGM’s securities regime, with a particular focus on offers, listings and trading, settlement and custody of digital securities.

The framework applies to a number of financial services activities, including in relation to exchanges and other trading venues, clearing houses, custodians, brokers and other intermediaries, as well as for the issuing, listing and trading of digital securities.

Importantly, the guidance also provides a roadmap for entities to efficiently and smoothly conduct digital securities activities within the ADGM, whether they have been operating within either the conventional or cryptoasset space.

The FSRA became one of the first jurisdictions worldwide to implement a comprehensive regulatory framework for cryptoasset activities, addressing the range of risks associated with such activities, including risks relating to money laundering and financial crime, consumer protection, technology governance, custody and exchange operations.

The publication complements earlier guidance on initial coin/token offerings and cryptoassets, and the implementation of ADGM’s cryptoasset regulatory framework.

Ten firms have been admitted to develop FinTech solutions for the SME sector including a number which utilise blockchain. BedouinChain is a digital private financing platform and BlockTrust, which is building the leading provider of digital trustee and custodial services across crypto currency assets for the Middle East, North Africa, India and South East Asia are both in the lab.

A regional first, the ADGM RegLab is a bespoke regulatory framework which provides a controlled environment for FinTech firms to develop and test innovative FinTech solutions. Successful applicants can test their product according to regulatory requirements tailored to contain the specific risks and impact of their particular test project. This project allows FinTech participants to explore innovative solutions in a cost effective and risk appropriate environment.

The platform, which was developed in partnership with Microsoft, allows users to initiate, manage and monitor ongoing cases through mobile devices, as well as file documents and receive SMS notifications updating them on their case and of. Additionally, “electronic evidence bundles” are included at no additional cost. Court hearings can also be conducted through video conferencing technology, accessed through an integrated calendar.