Dubai International Financial Centre (DIFC) announced the enactment of the world’s first Digital Assets Law, a new Law of Security and related amendments to select existing legislation to cater for the consequences of the new digital assets regime and revised security regime.
The legislative enactments aim to ensure DIFC Laws keep pace with the rapid developments in international trade and financial markets arising from technological developments, and to provide legal certainty for investors in, and users of, Digital Assets.
Following extensive review of the legal approaches taken to digital assets in multiple jurisdictions, and a period of public consultation in 2023, DIFC is now enacting its own Digital Assets Law.
DIFC Amendment Law, No. 3 of 2024, has updated existing DIFC laws such as Contracts Law, Law of Obligations, Law of Security, Law of Damages and Remedies, Trust Law, and Foundations Law to address specific issues related to digital assets. The amendments to the Law of Obligations allow for the use of electronic transferable records, facilitating efficiency in cross-border digital trade. Furthermore, in alignment with international best practices and UNCITRAL’s Model Law on Secured Transaction, DIFC is replacing the 2005 Law of Security with a new law to enhance its securities regime, particularly regarding digital assets, and integrating financial collateral provisions into it.
Jacques Visser, Chief Legal Officer at DIFC Authority, said,
“DIFC is excited to announce the enactment of its Digital Assets Law. We consider this legislation to be groundbreaking as the first legislative enactment to comprehensively set out the legal characteristics of digital assets as a matter of property law, and to provide for how digital assets may be controlled, transferred and dealt with by interested parties. At the same time, we are also enacting a new Law of Security, replacing the 2005 law. The revised regime is modelled on the UNCITRAL Model of Secured Transactions and significantly enhances DIFC’s securities regime to keep pace with international developments in this field and to ensure 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 practice.
News Source: Emirates News Agency
