Dubai Financial Services Authority Launches Tokenized Regulatory Sandbox

The Dubai Financial Services Authority (DFSA) has announced that it is inviting businesses to apply to join its tokenized regulatory sandbox. The deadline for applications is April 24, 2025. The DFSA is the independent body responsible for regulating the Dubai International Financial Centre (DIFC). In a March 17 announcement, the DFSA said that the sandbox initiative is designed to attract companies that wish to offer tokenized investment products and services. The sandbox provides a controlled environment for businesses to test tokenized financial solutions under the supervision of the regulator.
The DFSA has made it clear that eligible services include tokenised shares, bonds, sukuk, as well as collective investment fund units. Applications can be submitted by either existing businesses already authorised by the DFSA and looking to expand their tokenised business, or new applicants who are eligible. After submitting their application, businesses will move into the assessment process. Successfully selected businesses will be offered structured testing opportunities within the sandbox and receive tailored regulatory guidance. The DFSA has emphasised that only businesses with a strong business model and solid compliance capabilities will be selected. The sandbox programme is part of the DFSA's wider Innovation Testing Licence programme, which aims to help businesses refine their financial products in preparation for full authorisation.