DIFC announces the enactment of the world’s first digital assets law
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The Dubai International Financial Center (DIFC) announced the promulgation of the first Digital Asset Lawa new Security Law and related amendments to select existing legislation to address the consequences of the new digital assets regime and the revised security regime.
The legislative provisions are intended to ensure DIFC Laws keep up to date with the rapid evolution of international trade and financial markets resulting from technological advances, and provide legal certainty to investors and users of Digital Assets.
Following a comprehensive review of the legal approaches taken for digital assets in multiple jurisdictions and a public consultation period in 2023, the DIFC is now enacting its own Digital Assets Law.
DIFC Amendment Law, No. 3 of 2024, has updated existing DIFC laws such as the Contract Law, Obligations Law, Security Law, Damages and Remedies Law, Trust Law and Foundation Law to address specific issues related to digital assets. The amendments to the Obligations Law allow the use of electronic transferable records, facilitating efficiency in cross-border digital commerce. Furthermore, in line with international best practices and the UNCITRAL Model Law on Secured Transactions, the DIFC is replacing the Security Law of 2005 with a new law to improve its securities regime, particularly with respect to digital assets. , and integrating financial guarantee provisions into it.
Jacques Visser, legal director of the DIFC Authoritysaying,
“The DIFC is pleased to announce the enactment of its Digital Assets Law. We consider this legislation to be groundbreaking as the first legislative enactment that comprehensively establishes the legal characteristics of digital assets as a matter of property rights and establishes how interested parties can control, transfer and deal with digital assets. At the same time, we are also enacting a new Security Law, which replaces the 2005 law. The revised regime is modeled on the UNCITRAL Secured Transactions Model and significantly improves the DIFC securities regime to keep up with international developments in this field and ensure that the DIFC remains at the forefront of best practice.”
The new laws reflect the Centre’s commitment to maintaining a transparent and robust legal and regulatory framework aligned with global best practices.
News source: Emirates News Agency
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