The latest consultation paper distinguishes between crypto tokens and what are referred to as prohibited and excluded tokens.
According to the DFSA, excluded tokens consist of utility tokens which are “a type of token that has a specific use case within a closed ecosystem.” Non-fungible tokens (NFTs) and Central Bank Digital Currencies (CBDCs) are also on the list of the DFSA’s so-called excluded tokens.
Privacy tokens and devices, plus algorithmic tokens, are listed in the DFSA’s consultation paper as the prohibited tokens. The regulatory agency said it is proposing to “ban these tokens and introduce a prohibition that no public offer or promotion” of any such tokens should take “place in or from the DIFC.”
