The Dubai International Financial Centre (DIFC) has made significant progress in embracing the digital assets revolution by passing new laws and amending existing ones. These measures aim to provide clarity and legal certainty for investors and users in this rapidly evolving field. The new legislation includes the Digital Assets Law and the Security Law, alongside amendments to existing laws. The goal is to keep pace with international trade and financial markets while offering legal protection for those involved in digital assets.
Jacques Visser, from the Dubai International Financial Centre Authority, views this legislation as groundbreaking. It’s the first of its kind to comprehensively define the legal status of digital assets as property.
The Digital Assets Law, spanning seven pages, clarifies the legal aspects of digital assets. Meanwhile, the Security Law, which replaces previous laws dating back to 2005, incorporates modern regulations to enhance financial security.
The DIFC, functioning as a special economic zone with a legal system rooted in English law, drew inspiration from global standards such as the United Nations Commission on International Trade Law’s Model Law on Secured Transactions. This ensures alignment with international best practices.
By enacting these regulations, the DIFC joins other leading financial hubs like Hong Kong and Singapore in recognizing digital assets as property. While each jurisdiction may have its approach, the overarching goal is to regulate crypto and digital assets for the safety of investors and the stability of the economy.
