The DFSA Tokenisation Regulatory Sandbox

The Riffle

DFSA jumps onto the tokenisation bandwagon by offering an ITL-route to regulation. Existing DFSA-regulated firms are also eligible - will we see real estate crowdfunding platforms ‘crowding’ up this space??

Personally, I see this as a HUGE opportunity for Crowdfunding platforms and others seeking tokenisation of Real World Assets - get in touch!

The DFSA has invited expressions of interest from firms seeking to develop tokenised products or services within the DIFC.

Eligibility

• Firms that operate a business model in tokenisation - issuing, trading, holding and settling tokenised investments of assets (including equities, bonds, sukuks, funds and real-world assets)

• Existing DFSA firms can also apply

• Crypto tokens and Fiat Crypto tokens (stable coins) are not in scope

Process of shortlisting

Step 1 - Expression of Interest

Step 2 - Initial meeting with the DFSA

Step 3 - ITL Tokenisation Cohort Application

ITL Cohort

The ITL program would work like all other ITL programs - read more here.

Starts with the authorisation process (3-6 weeks) once the application is submitted. The DFSA aims to grant the ITL license within 2 months from application submission.

The live market testing period will be 6-12 months, following which the firm can a) withdraw and close or b) apply for a full and unrestricted license (2 month process).

Read our full briefing here: