UAE Releases Draft Regulations For Security And Commodity Tokens

According to Foresight News, the United Arab Emirates Securities and Commodities Authority (SCA) has unveiled a draft regulation for security and commodity token contracts. The public is invited to provide feedback on the draft by February 14, 2025. The draft outlines that security tokens include equity tokens, bond tokens, and Islamic bond tokens, while commodity tokens encompass gold tokens, oil tokens, and others. These tokens are built on blockchain or distributed ledger technology (DLT) platforms and can be traded on virtual asset DLT platforms. Security and commodity tokens are restricted to trading and settlement through markets or alternative trading systems, whereas bonds and Islamic bonds can be traded and settled over-the-counter.