Latest news with #InnovationTestingLicence
Arabian Business
4 days ago
- Business
- Arabian Business
DFSA tokenisation regulatory Sandbox receives 96 global applications from six countries
The Dubai Financial Services Authority (DFSA) has announced the next phase of its Tokenisation Regulatory Sandbox, beginning engagement with firms selected to join its Innovation Testing Licence programme. The DFSA, which regulates the Dubai International Financial Centre, allows entities to test financial products and services under a controlled environment through its regulatory sandbox. The Authority launched its Innovation Testing Licence in 2017 and continues to build a market that aligns with the needs of traditional and non-traditional financial institutions, investors, and entrepreneurs, the authority said in a statement. DFSA tokenisation Sandbox attracts interest from UK, EU, Canada, Singapore and Hong Kong The DFSA introduced its Investment Token regime in 2021 to regulate tokens used as investment instruments. It implemented a Crypto Token regime in 2022 as a framework for classifying, recognising, and governing crypto tokens. In June 2024, the DFSA refined its approach with amendments including streamlined token-recognition criteria and the first approvals of stablecoins. The DFSA's Tokenisation Regulatory Sandbox launched in March 2025 and received 96 expressions of interest from across the United Arab Emirates, United Kingdom, European Union, Canada, Singapore, and Hong Kong. The expression of interest process provided the DFSA with insight into the diversity and maturity of tokenisation models being developed. Applications included proposals to tokenise financial assets and instruments, such as bonds including Islamic bonds or sukuk, units in a fund including money market funds and property funds, and the trading and safe custody of those assets. The initiative attracted interest from established financial institutions exploring tokenisation use cases and start-ups looking to scale digital asset solutions in a regulated environment. 'The global interest in our Tokenisation Regulatory Sandbox signals the importance of, and growing appetite for, responsible innovation, and recognises the appeal of DFSA's regulatory approach to innovation. As a regulator, our role is to support innovation and its positive contribution to the financial markets in ways that maintain market integrity and protect the public interest within the DIFC. By working closely with local and global firms through the sandbox, we are encouraging responsible innovation and helping to ensure that new ideas are tested against regulatory expectations,' Charlotte Robins, Managing Director, Policy & Legal said. Following a review, applicants were assessed based on their business model, clarity of use case, and readiness to test. Some firms were invited into the sandbox for testing under the Innovation Testing Licence, while others were considered suitable for full authorisation under existing rules due to the maturity of their operations and experience in other regulated jurisdictions. The DFSA will work with the firms selected for the Innovation Testing Licence to develop testing plans. Sandbox participants will begin trials within a controlled environment in the coming weeks. The outcomes from this cohort will help inform regulatory policy and refinements to the DFSA's digital assets and innovation frameworks. The DFSA's Tokenisation Regulatory Sandbox supports the DIFC's position as a hub for digital finance and aligns with Dubai's Economic Agenda D33, which aims to make Dubai one of the world's top four financial hubs by 2033.
Hi Dubai
4 days ago
- Business
- Hi Dubai
DFSA Advances Tokenisation Strategy with New Regulatory Sandbox Phase
The Dubai Financial Services Authority (DFSA) has launched the next phase of its Tokenisation Regulatory Sandbox, selecting a group of firms to begin live testing under its Innovation Testing Licence (ITL) programme. The move signals the regulator's growing commitment to fostering responsible innovation within the Dubai International Financial Centre (DIFC). Introduced in March 2025, the sandbox drew 96 expressions of interest from across the UAE, UK, EU, Canada, Singapore, and Hong Kong. Applicants proposed a range of use cases, including the tokenisation of financial assets such as bonds, sukuk, and fund units, along with trading and custody solutions. The initiative attracted both established institutions and emerging start-ups looking to scale token-based models within a regulated framework. The DFSA's ITL programme, first launched in 2017, allows firms to test innovative products in a controlled environment. Following a rigorous review process, select firms were invited into the sandbox for live trials, while others qualified for direct authorisation under existing rules due to the maturity of their operations. Charlotte Robins, Managing Director of Policy & Legal at the DFSA, said the level of global interest reflects a 'growing appetite for responsible innovation' and confidence in the Authority's regulatory approach. 'By working closely with local and global firms, we are helping ensure new ideas are tested against regulatory expectations,' she said. Participants will now co-develop bespoke testing plans with the DFSA, with sandbox trials set to begin in the coming weeks. Insights from this phase will inform future regulatory policy and help shape the Authority's evolving digital asset framework. The initiative forms part of the DFSA's broader strategy to align with global best practice and support Dubai's D33 agenda to become one of the world's top four financial hubs by 2033. News Source: Emirates News Agency
Gulf Today
5 days ago
- Business
- Gulf Today
DFSA begins engagement with firms selected for its Tokenisation Regulatory Sandbox
The Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), today announced the next phase of its Tokenisation Regulatory Sandbox, beginning engagement with firms selected to join its Innovation Testing Licence programme – the DFSA's regulatory sandbox that allows entities to test innovative financial products and services under a controlled environment. The DFSA continues to differentiate itself through initiatives that support innovation across the FinTech ecosystem. The Authority launched its Innovation Testing Licence in 2017, and remains focused on building an adaptive, forward-looking market that is aligned with the emerging needs of both traditional and non-traditional financial institutions, investors, and entrepreneurs. In 2021, the DFSA introduced its first-of-its-kind Investment Token regime to regulate tokens used as investment instruments, and implemented an enhanced Crypto Token regime in 2022 as a second-phase framework for classifying, recognising, and governing crypto tokens. This was followed in June 2024, when the DFSA further refined its approach with amendments – including streamlined token-recognition criteria and the first approvals of stablecoins – underscoring its commitment to adaptive, responsible innovation. Applying this strategy more broadly, the DFSA's Tokenisation Regulatory Sandbox, launched in March 2025, received 96 expressions of interest from across the United Arab Emirates, United Kingdom, European Union, Canada, Singapore, and Hong Kong. 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 expression of interest process provided the DFSA with valuable insight into the diversity and maturity of tokenisation models being developed globally. Applications included proposals to tokenise financial assets and instruments, such as bonds (including Islamic bonds, or sukuk), units in a fund (including money market funds and property funds), 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. Speaking at the DFSA's Policy & Legal Roundtable, Charlotte Robins, Managing Director, Policy & Legal, said: 'The global interest in our Tokenisation Regulatory Sandbox signals the importance of, and growing appetite for, responsible innovation, and recognises the appeal of DFSA's regulatory approach to innovation. As a regulator, our role is to support innovation and its positive contribution to the financial markets in ways that maintain market integrity and protect the public interest within the DIFC. By working closely with local and global firms through the sandbox, we are encouraging responsible innovation and helping to ensure that new ideas are tested against regulatory expectations.' Following a detailed review, applicants were assessed based on their business model, clarity of use case, and readiness to test. Some firms were invited into the sandbox for live testing under the Innovation Testing Licence, while others were considered suitable for full authorisation under existing rules due to the maturity of their operations and experience in other regulated jurisdictions. The DFSA will now work with the firms selected for the Innovation Testing Licence to co-develop bespoke testing plans. Sandbox participants will begin trials within a controlled environment in the coming weeks. The outcomes from this cohort will help inform future regulatory policy and potential refinements to the DFSA's evolving digital assets and broader innovation frameworks. 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 – supporting the DIFC's position as a leading hub for digital finance, and aligning with Dubai's Economic Agenda D33, which aims to make Dubai one of the world's top four global financial hubs by 2033. WAM
Mid East Info
5 days ago
- Business
- Mid East Info
The DFSA begins engagement with firms selected for its Tokenisation Regulatory Sandbox, reinforcing its commitment to responsible innovation in the DIFC
Dubai, United Arab Emirates, June 2025: The Dubai Financial Services Authority DFSA, the independent regulator of the Dubai International Financial Centre DIFC, today announced the next phase of its Tokenisation Regulatory Sandbox, beginning engagement with firms selected to join its Innovation Testing Licence programme – the DFSA's regulatory sandbox that allows entities to test innovative financial products and services under a controlled environment. The DFSA continues to differentiate itself through initiatives that support innovation across the FinTech ecosystem. The Authority launched its Innovation Testing Licence in 2017, and remains focused on building an adaptive, forward-looking market that is aligned with the emerging needs of both traditional and non-traditional financial institutions, investors, and entrepreneurs. In 2021, the DFSA introduced its first-of-its-kind Investment Token regime to regulate tokens used as investment instruments, and implemented an enhanced Crypto Token regime in 2022 as a second-phase framework for classifying, recognising, and governing crypto tokens. This was followed in June 2024, when the DFSA further refined its approach with amendments – including streamlined token-recognition criteria and the first approvals of stablecoins – underscoring its commitment to adaptive, responsible innovation. Applying this strategy more broadly, the DFSA's Tokenisation Regulatory Sandbox, launched in March 2025, received 96 expressions of interest from across the United Arab Emirates, United Kingdom, European Union, Canada, Singapore, and Hong Kong. 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 expression of interest process provided the DFSA with valuable insight into the diversity and maturity of tokenisation models being developed globally. Applications included proposals to tokenise financial assets and instruments, such as bonds (including Islamic bonds, or sukuk), units in a fund (including money market funds and property funds), 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. Speaking at the DFSA's Policy & Legal Roundtable, Charlotte Robins, Managing Director, Policy & Legal, said: 'The global interest in our Tokenisation Regulatory Sandbox signals the importance of, and growing appetite for, responsible innovation, and recognises the appeal of DFSA's regulatory approach to innovation. As a regulator, our role is to support innovation and its positive contribution to the financial markets in ways that maintain market integrity and protect the public interest within the DIFC. By working closely with local and global firms through the sandbox, we are encouraging responsible innovation and helping to ensure that new ideas are tested against regulatory expectations.' Following a detailed review, applicants were assessed based on their business model, clarity of use case, and readiness to test. Some firms were invited into the sandbox for live testing under the Innovation Testing Licence, while others were considered suitable for full authorisation under existing rules due to the maturity of their operations and experience in other regulated jurisdictions. Next steps: The DFSA will now work with the firms selected for the Innovation Testing Licence to co-develop bespoke testing plans. Sandbox participants will begin trials within a controlled environment in the coming weeks. The outcomes from this cohort will help inform future regulatory policy and potential refinements to the DFSA's evolving digital assets and broader innovation frameworks. 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 – supporting the DIFC's position as a leading hub for digital finance, and aligning with Dubai's Economic Agenda D33, which aims to make Dubai one of the world's top four global financial hubs by 2033.
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.
