The Dubai Financial Service Authority (DFSA) has published a consultation paper regarding the regulation of the FinTech sector. “The DFSA’s approac
The Dubai Financial Service Authority (DFSA) has published a consultation paper regarding the regulation of the FinTech sector.
“The DFSA’s approach to Fintech has been to regulate where needed, in order to create an environment that encourages innovation in technology in its many forms and applications. The DFSA will continue to watch as the market develops and respond to the evolving requirements of this industry.”, said chief executive Johnston.
The consultation paper named “Consultation paper CP112. Testing Fintech innovations in the DIFC” is the third one the financial regulator has released. The paper presents DFSA`s approach to regulation of the financial technology sector.
DFSA proposes the so-called “Innovation Testing License”. Financial technology companies need to meet a number of qualifying criteria covering the use of financial technology, “live” testing with customers and others, stated page 7 of the report. A full list of the qualifying criteria is available below (Credit: DFSA):
By obtaining a financial service license, financial start-ups will be obliged to comply with the limits imposed by DFSA for the safety of the customers. However, companies will not have to follow unnecessary rules in the testing stage.
“The DFSA has been discussing opportunities with a number of interested Fintech firms. We have concluded that it would be helpful to current stakeholders, and to the wider public, for us to set out more explicitly how we will deal with future enquiries from those interested in establishing a presence in the DIFC for a FinTech business.”, said Peter Smith, DFSA managing director of policy and strategy, in an interview with cryptocoinnews.com.
Dubai has been known to have a Fintech-friendly approach. Initiatives such as the Dubai Blockchain strategy program and the recent partnership between IBM and the government exemplify this.