Yesterday the Dubai Financial Services Authority (DFSA) announced it had implemented a regulatory framework for security tokens issued or traded within the Dubai International Financial Centre (DIFC). The DFSA said it also plans to consult on regulating cryptocurrencies and stablecoins. It addressed security tokens first because that was requested more often. And its definition of security tokens includes both securities and derivatives.
In March, the DFSA published a security token consultation document, and the new rules are based on this. One of the more novel aspects is it explored how to enable person to person (p2p) trading without intermediaries, potentially including permissionless blockchains.
It concluded that no matter the technology, most marketplaces have a market operator. Where a regulatory regime might have required an intermediary to enforce compliance and other procedures, these requirements would now apply to the market operator in the absence of an intermediary. So the market operator becomes the enforcer.
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