Dubai’s financial regulators are set to launch the country’s first Tokenization Regulatory Sandbox, inviting crypto firms to participate in a controlled testing environment.
According to an official announcement, registrations will be open from March 17 to April 24 under the supervision of the Dubai Financial Services Authority (DFSA).
The initiative, hosted within the Dubai International Financial Centre (DIFC), aims to provide a structured regulatory pathway for companies exploring tokenized investment products and services. Participating firms will have the opportunity to develop, test, and seek approval for tokenized offerings under DFSA’s Innovation Testing License.
The sandbox program will unfold in two key phases. First, crypto firms must submit an expression of interest to formally indicate their intent to develop tokenized products. In the second phase, selected participants will be grouped into the Innovation Testing License tokenization cohort, where they will engage in structured testing under DFSA oversight.
Eligible firms include those involved in issuing, trading, or holding tokenized investment products, as well as DFSA-licensed firms looking to expand into tokenization. Participants must undergo an assessment process, with priority given to firms that demonstrate a clear business model and a solid understanding of regulatory requirements.
The launch of this sandbox marks another milestone in Dubai’s efforts to integrate crypto into its financial ecosystem. The city’s digital asset regulator, Virtual Assets Regulatory Authority (VARA), recently announced that it is preparing to roll out new regulations that will require cryptocurrency businesses to disclose the identities of major token holders.
VARA’s chief, Matthew White, stated that the forthcoming rules would apply to licensed crypto issuers and service providers, mandating them to reveal large stakeholders, often referred to as “whales.”
Also, Ripple was granted a license by the Dubai Financial Services Authority (DFSA) on March 13, 2025. The U.S. company became the first blockchain-powered payments company authorized to offer regulated crypto payment services within the Dubai International Financial Centre (DIFC).
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