The Dubai Financial Services Authority has Granted Regulatory Permission to the Bitcoin Fund

By focusing on fintech and innovative technology, the DFSA is promoting itself as a forward-thinking regulator for the region. The Dubai Financial Services Authority has granted regulatory permission to the Bitcoin Fund a closed-end investment entity located in Canada (DFSA).

The fund became the first listed digital asset fund in the Middle East when it debuted on Nasdaq on June 23, 2021.

Following the offering’s acceptance, the Bitcoin Fund will be able to list up to $200 million worth of units on Nasdaq Dubai, allowing the Middle East’s first listed digital asset product to meet the growing demand from regional institutional investors.

Purpose of the FUND

The fund’s purpose is to give investors exposure to Bitcoin (BTC) and daily Bitcoin price fluctuations in US dollars, as well as long-term capital appreciation. The fund is a diversified portfolio of digital assets that includes Bitcoin and money market instruments denominated in US dollars.

Nasdaq Dubai is the first official stock exchange in the Middle East to offer this new service, which is part of the company’s commitment to fintech adoption. The DFSA is seeking to promote itself as a forward-thinking regulator in the region by focusing on new technologies and financial solutions that can assist the region grow economically.

As part of its efforts to stimulate the digital financial and technology environment while also addressing market players’ requests and requirements, the DFSA has designed a legal framework for investment tokens.

DFSA is an independent regulatory organization in Dubai that oversees and regulates financial services firms seeking to operate in the city. It also controls and licenses its goods and services.

The DFSA is also developing proposals for unlisted securities that are not covered by the regulatory framework for investment tokens. Cryptocurrencies, utility tokens, and certain stablecoins are expected to be among them. In the fourth quarter of this year, the DFSA is anticipated to release a follow-up consultation document.