Latest news with #TokenisationRegulatorySandbox
Khaleej Times
20-05-2025
- Business
- Khaleej Times
DFSA's tokenisation regulatory sandbox attracts investor interest
The Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), has announced that 96 innovative firms have expressed interest in the DFSA's inaugural Tokenisation Regulatory Sandbox. The launch of the sandbox marks a major step forward in the DFSA's strategy to support responsible financial innovation within the DIFC and reflects its growing focus on tokenisation as a transformative force in financial services. The Tokenisation Regulatory Sandbox forms part of the DFSA's Innovation Testing Licence programme and supports the regulator's broader commitment to fostering innovation while maintaining market integrity and protecting investors. Expressions of interest came from a diverse range of sectors that are exploring the tokenisation of financial assets and instruments, including those associated with the tokenisation of shares, bonds (including Islamic bonds (sukuk)), units in a fund, and the trading and safe custody of those assets – reflecting the broad potential of tokenisation across the financial ecosystem. The initiative attracted strong interest from both established financial institutions wishing to explore tokenisation use cases and innovative start-ups looking to scale breakthrough digital asset solutions in a regulated environment. This strong engagement underscores DIFC's growing appeal as a global hub for digital finance and innovation. Justin Baldacchino, Managing Director, Supervision, DFSA, said: 'We are excited to see such strong interest in the DFSA's Tokenisation Regulatory Sandbox and to talk about it at the Dubai FinTech Summit. This momentum supports the DFSA's strategic commitment – and aligns with the Dubai Economic Agenda D33 goal – to position Dubai among the world's top four global financial hubs by 2033. The sandbox marks a new chapter in our engagement with innovative financial technologies, enabling firms to safely test tokenised solutions in a transparent, measured, and responsible manner, within a well-regulated environment, without being subject to the full suite of regulatory requirements that would otherwise apply.' The DFSA's themed sandbox approach enables targeted supervision, constructive regulatory dialogue, and the development of tailored policy responses to emerging financial technologies while fostering responsible innovation in the market. It also supports DIFC, Dubai, and the United Arab Emirates' broader ambition to become a global hub for digital assets, fintech, and next-generation financial services and market infrastructure. Following the Expressions of Interest stage, selected firms will be invited to apply for an Innovation Testing Licence and enter a live testing phase under DFSA oversight, where they can refine their offerings while addressing critical areas such as investor protection, transparency, and financial stability. Upon successful completion of the programme, firms may apply to transition to a full, unrestricted licence, or withdraw their Innovation Testing Licence. For more information on the Innovation Testing Licence, access the explainer guide here. The DFSA's Tokenisation Regulatory Sandbox underscores the DFSA's commitment to enable innovation in a way that is responsible, informed, and aligned with global regulatory best practice.
Hi Dubai
13-05-2025
- Business
- Hi Dubai
DFSA Launches Tokenisation Sandbox as 96 Firms Signal Strong Interest
The Dubai Financial Services Authority (DFSA) has received expressions of interest from 96 firms for its newly launched Tokenisation Regulatory Sandbox, a major milestone in its push to support responsible innovation in the Dubai International Financial Centre (DIFC). This initiative, part of the DFSA's broader Innovation Testing Licence programme, is designed to allow firms to trial tokenised financial products in a controlled environment. It reflects the regulator's commitment to balancing innovation with market integrity and investor protection. The sandbox attracted a wide mix of participants, from established institutions to agile start-ups, all exploring tokenisation use cases across shares, bonds, Islamic sukuk, fund units, and digital asset custody. The high level of engagement signals the growing importance of DIFC as a global hub for digital finance and next-generation financial services. Justin Baldacchino, DFSA's Managing Director of Supervision, said the interest reinforces Dubai's ambition to be among the world's top four financial hubs by 2033, aligning with the Dubai Economic Agenda D33. 'This momentum supports our strategic commitment and opens the door to testing cutting-edge financial technologies in a secure, transparent, and regulated space,' he said. The DFSA's themed sandbox model enables close regulatory dialogue, targeted oversight, and the development of bespoke policy responses to emerging technologies, all while encouraging responsible innovation in the market. Firms that move beyond the initial interest phase will be invited to apply for an Innovation Testing Licence and begin live trials under DFSA supervision. Upon successful completion, they may apply for a full licence or exit the programme. News Source: Emirates News Agency
Zawya
01-05-2025
- Business
- Zawya
The DFSA launches Innovation Testing Licence explainer guide to boost innovation in the DIFC
Dubai, United Arab Emirates: The Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), has launched a new explainer guide on its Innovation Testing Licence to support the growth of innovative financial services in or from the DIFC. The Innovation Testing Licence – the DFSA's regulatory sandbox – is a restricted financial services licence that allows eligible firms to test innovative financial products, services, and business models within a controlled environment with temporary modifications to existing regulatory requirements whilst being subject to close supervisory oversight. Launched in 2017, the Innovation Testing Licence remains a cornerstone of the DFSA's approach to support the responsible development of financial technology solutions in the DIFC. Designed as a practical tool for firms interested in applying for the licence, the DFSA's Innovation Testing Licence explainer guide offers clear and accessible information on how to engage with the DFSA's regulatory sandbox, test innovative solutions, and navigate the path to full authorisation. It outlines the purpose of the licence, eligibility criteria, application process, and obligations firms must meet during the testing phase. Justin Baldacchino, Managing Director, Supervision, DFSA, said: "As the financial sector continues to evolve at pace, we recognise the importance of supporting innovation with clear and transparent regulatory guidance. The DFSA's Innovation Testing Licence explainer guide is designed to demystify the process and empower innovators with the knowledge they need to engage with the DFSA and bring transformative financial services to market in the DIFC." The release of the explainer guide builds on the DFSA's long-standing commitment to fostering innovation while ensuring regulatory integrity. Looking ahead: DFSA at the Dubai FinTech Summit 2025 The launch of the DFSA's Innovation Testing Licence explainer guide comes ahead of the Dubai FinTech Summit 2025, taking place on 12-13 May 2025, where the DFSA will play a central role in shaping the global dialogue on regulatory innovation: Leading the Regulatory Forum sessions on Day 1, with topics and speakers curated to shape global regulatory dialogue. Hosting the Cyber and AI Regulatory College, bringing together, thought leaders on AI and cyber risk management from industry, academia, regulators, and standard setters from around the world. Connecting with delegates at the DIFC exhibition stand to discuss the Innovation Testing Licence, Tokenisation Regulatory Sandbox, Threat Intelligence Platform, and the DFSA's regulatory approach to crypto and digital assets – among other key initiatives. Exchanging views on emerging priorities with industry stakeholders through roundtable discussions on key topics such as wealth management, crypto regulation – including a session co-hosted with the Global Blockchain Business Council – and sustainable finance. During the Summit, the DFSA will also share the outcomes of its Expression of Interest as part of the Tokenisation Regulatory Sandbox, a newly launched initiative providing tailored support for the testing of tokenised products and services within the DIFC. This marks another step in the DFSA's commitment to developing robust, future-ready regulatory frameworks for digital and tokenised finance. The DFSA's Innovation Testing Licence explainer guide is now available on the DFSA website. Applications for the Innovation Testing Licence are open year-round, with decisions typically issued within 10-12 weeks of receiving a complete submission, subject to the quality of the application and the responsiveness of the firm to any follow-up questions that the DFSA may have. For further information, please contact: Corporate Communications Dubai Financial Services Authority (DFSA) Level 13, The Gate, West Wing Dubai, UAE Email: DFSAcorpcomms@ About DFSA The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in and from the Dubai International Financial Centre (DIFC), a purpose-built financial free zone in Dubai, UAE. The DFSA regulates and supervises financial services firms and markets in the DIFC. These include asset managers, banks, custody and trust services, commodities futures traders, fund managers, insurers and reinsurers, traders of securities and fintech firms. We supervise exchanges and trading platforms for both conduct and prudential purposes, overseeing an international securities exchange (Nasdaq Dubai) and an international commodities derivatives exchange (Gulf Mercantile Exchange). The DFSA is also responsible for supervising and enforcing anti-money laundering and countering the financing of terrorism requirements applicable in the DIFC. Please refer to the DFSA's website for more information. Justin Baldacchino is the Managing Director of Supervision at the DFSA, bringing 25 years of international finance experience. He possesses deep expertise in regulatory interpretation, liaison, implementation, risk, regulatory affairs, compliance, anti-money laundering (AML), capital, liquidity, innovation, and technology. Joining the DFSA in 2020, Mr Baldacchino previously served as the Group Head of Regulatory Compliance for ANZ Bank in Australia and held various senior roles at JP Morgan in Hong Kong, including Head of Regulatory Compliance, Asia-Pacific, and Head of International Operational Risk, Asia-Pacific. He also served as Head of Compliance and Risk Governance, Asia for National Australia Bank in Hong Kong. Mr Baldacchino is an alumnus of Melbourne Business School with an MBA and a Post Graduate Diploma, and he holds a Bachelor of Economics from La Trobe University. He completed the Harvard Executive Programme in Regulatory Strategic Management and is a certified AML Specialist. He has served as an Executive Board Member for the Association of Certified Anti-Money Laundering Specialists and is currently a member of The Basel Consultative Group.
