UAE SCA Updates Regulations to Include Security and Commodity Tokens

The UAE Securities and Commodities Authority (SCA) has clarified its regulatory framework to accommodate security tokens and commodity contract tokens. These digital representations of assets, such as company shares or bonds, will now receive the same investor protections and oversight as traditional securities.

Gold and oil tokens were cited as examples during the consultation process. The regulation maintains a technology-agnostic approach, applying consistent legal requirements regardless of whether assets are issued on paper, electronic records, or distributed ledger technology (DLT).

This MOVE aims to mitigate risks associated with DLT while preserving the integrity of existing financial regulations. The SCA emphasized that all securities and commodities contracts will be treated equally, whether they use permissioned or permissionless ledgers.