The Dubai Financial Services Authority (DFSA) is reportedly lowering barriers for FinTech firms with a new license to foster innovation in the financi
The Dubai Financial Services Authority (DFSA) is reportedly lowering barriers for FinTech firms with a new license to foster innovation in the financial technology sector in Dubai.
Dubai`s financial regulator is making it easier for FinTech start-ups and companies to offer new services and enter the region. This is achieved through the introduction of the Innovation Testing License (ITL).
The idea is that the regulator will not regulate unless needed, promising to be “flexible, responsive, innovative and adaptable” with FinTech companies.
Firms that qualify for the license will be able to test and develop new services and concepts within the Dubai International Financial Centre (DIFC), a free-zone district that allows companies to hold 100% ownership of their base without the need of a local partner, according to the article.
“FinTech is changing the landscape for financial services, providing more opportunities to seek financing and increasing financial inclusion.”, as Ian Johnston, chief executive of the regulatory body told cryptocoinnews.com.
“As regulators, it is our responsibility to provide a framework which supports the sustainable development of this industry while protecting consumers and financial stability.”, as he added.
The DFSA`s approach is aligned with the National Innovation Strategy that is put forward by UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, according to DFSA`s press release.
“Our efforts to develop a regulatory framework that promotes growth and innovation, while protecting financial stability and consumers, is part of our contribution to Dubai’s greater vision of becoming an information-based society and a smart city.”, as Mr Johnston said in a statement.
FinTech businesses will be able to use the “restricted” financial services license for testing innovative services or products in a period of six to twelve months. This period is subject to extension by the regulator, as they noted in their official press release.