10 Leaves

This episode is also available as a blog post: https://10leaves.ae/publications/blockchain-crypto/setting-up-alternate-trading-system-ats-in-the-difc

What is an Alternative Trading System?

An ATS is a platform that is more loosely regulated than an exchange. It is used to match large orders mainly from institutional clients, and hence work as broker-dealers rather than exchange houses. They are also referred to as Multilateral Trading Facilities in Europe.

The DFSA recognizes two types of ATS platforms – Multilateral Trading Facilities that operate on non-discretionary rules, and Organised Trading Facilities that operate on discretionary rules.

MTF operators allow for trading of a wide variety of equity and non-equity securities, including shares, warrants, options, derivatives, futures, CFDs, fund units and crypto assets. Contracts between buyers and sellers are formed according to a set of transparent rules that do not discriminate between members or their clients (non-discretionary basis).

Can an ATS operator conduct a Security Token Offering (STO)?

Security Tokens can be listed and traded on DFSA-regulated exchanges or Alternate Trading Systems, with both facilities being able to host initial token offerings and secondary trading.

The current admission criteria will also be applied to such Security Tokens, in a way that tokens trading elsewhere will also be tradable in such facilities.

In cases where the ATS is exclusively dedicated to trading only in Security Tokens, it would be labeled a Security Token Market (or Derivative Token Market).

This episode is also available as a blog post: https://10leaves.ae/publications/blockchain-crypto/difc-digital-assets-regime

The Dubai Financial Services Authority (DFSA) recently issued a consultation paper on the regulation of Security Tokens in the DIFC. This paper is one of the two consultation papers that will go on to make the base for the DIFC Digital Assets Regime, thus opening the gateway to a whole new world of exciting and cutting-edge fintech applications using the Distributed Ledger Technology (DLT).

The DFSA then made the relevant amendments to it’s legislation in the end of September, thus creating the framework for the regulation of Security Tokens in the centre.

Part 1 of the DIFC Digital Assets Regime covers Security Tokens. Part 2 is expected to cover Utility Tokens, Exchange Tokens and Stablecoins.

The DIFC Digital Assets Regime will be of interest to issuers of Security Tokens, Authorised Market Institutions that wish to admit Security Tokens to trading, or performing clearing and settlement services, operators of Alternate Trading Systems such as Multilateral Trading Facilities (MTF) and Organised Trading Facilities (OTF) that wish to trade Security Tokens, providers of Digital Wallets who provide custody and storage services for such tokens, technology providers and in general, any licensed firm that wishes to advise, arrange or manage crypto-assets.

This episode is also available as a blog post: https://10leaves.ae/publications/blockchain-crypto/difc-digital-assets-regime

The Dubai Financial Services Authority (DFSA) recently issued a consultation paper on the regulation of Security Tokens in the DIFC. This paper is one of the two consultation papers that will go on to make the base for the DIFC Digital Assets Regime, thus opening the gateway to a whole new world of exciting and cutting-edge fintech applications using the Distributed Ledger Technology (DLT).

The DFSA then made the relevant amendments to it’s legislation in the end of September, thus creating the framework for the regulation of Security Tokens in the centre.

Part 1 of the DIFC Digital Assets Regime covers Security Tokens. Part 2 is expected to cover Utility Tokens, Exchange Tokens and Stablecoins.

The DIFC Digital Assets Regime will be of interest to issuers of Security Tokens, Authorised Market Institutions that wish to admit Security Tokens to trading, or performing clearing and settlement services, operators of Alternate Trading Systems such as Multilateral Trading Facilities (MTF) and Organised Trading Facilities (OTF) that wish to trade Security Tokens, providers of Digital Wallets who provide custody and storage services for such tokens, technology providers and in general, any licensed firm that wishes to advise, arrange or manage crypto-assets.

The 10 Leaves Group, one of the region’s leading bespoke consultancies, will now accept crypto payments for their blockchain-related services and solutions.

With this, 10 Leaves becomes the first consultancy of it’s kind in the region to accept cryptocurrency payments, thus opening up their services to a wider audience of pioneers in businesses that work with Distributed Ledger Technology applications.

The UAE’s recent focus on blockchain, coupled with the exciting announcements of DIFC implementing a Digital Assets Regime and DWTC signing up with Binance, is expected to bring in hundreds of startups that operate in the Defi (decentralised finance), DApps (decentralised applications) and NFT (Non Fungible Token) space.

10 Leaves, through it’s technology arm Tenl Technologies, has built up excellent capabilities in these sectors. From fintech advisory, regulatory sandbox consulting to tokenization and legalities of smart contracts, the 10 Leaves Group is poised to advise it’s clients on blockchain-related implementations and regulatory licensing across DIFC, ADGM, DWTC, DMCC, Bahrain and Europe (Luxembourg and Lithuania).

“Dubai has demonstrated it’s vision by focusing on new technologies, and as a consultancy with over 17 years in the business, we aim to complement the leadership’s efforts in supporting entrepreneurs and visionaries who will shape our lives in the years and decades to come”, said Rohit Ghai, Founder of 10 Leaves. “Our crypto-related solutions will help startups and established players in this niche space to navigate nascent and complex regulatory requirements, while staying competitive and compliant.”

“We aim to build an ecosystem of web3-related stakeholders”, added Soumen Ghosh, who has joined the 10 Leaves Group as Partner-Technology. “This includes everyone from early adopters, to startups, tech providers, investors and regulators…to encourage conversations that will lead to contributing towards making the UAE a hub in the blockchain and crypto space.”

The 10 Leaves Group, one of the region’s leading bespoke consultancies, now launches solutions for blockchain and crypto fintechs!

Our journey started with regulatory licensing services in 2005, one year after DIFC launched the first financial centre in the region.

We built up a strong portfolio of clients in traditional finance, and then moved on to advising fintechs in establishing a base in the region and getting regulated.

Today, the 23rdof January, marks a new milestone in our journey. We have become the first consultancy to launch in the metaverse, and with it, bring to the UAE a wide range of blockchain and crypto-related solutions.

The UAE’s recent focus on blockchain, coupled with the exciting announcements of DIFC implementing a Digital Assets Regime and DWTC signing up with Binance, is expected to bring in hundreds of startups that operate in the Defi (decentralised finance), DApps (decentralised applications) and NFT (Non Fungible Token) space.

10 Leaves, through it’s technology arm Tenl Technologies, has built up excellent capabilities in these sectors. From fintech advisory, regulatory sandbox consulting to tokenization and legalities of smart contracts, the 10 Leaves Group is poised to advise it’s clients on blockchain-related implementations and regulatory licensing across DIFC, ADGM, DWTC, DMCC, Bahrain and Europe (Luxembourg and Lithuania).

The blockchain space is new, and ever evolving. These changing paradigms call for a new look dedicated site. Presenting DCENTRAL.AE. Your resource for all things decentralised. And yes, we are on IPFS as well (if you understand what that is!) – and if you know how to “BRAVE” your way there, do have a look at 10leaves.x.

We didn’t stop there. Today, 10 Leaves also becomes the first consultancy of it’s kind in the region to accept cryptocurrency payments, thus opening up their services to a wider audience of pioneers in businesses that work with Distributed Ledger Technology applications.

Dubai has demonstrated it’s vision by focusing on new technologies, and as a consultancy with over seventeen years in the business, we aim to complement the leadership’s efforts in supporting entrepreneurs and visionaries who will shape our lives in the years and decades to come…Our crypto-related solutions will help startups and established players in this niche space to navigate nascent and complex regulatory requirements, while staying competitive and compliant.

This episode is also available as a blog post: https://10leaves.ae/publications/difc/guide-to-the-difc-asset-manager-license

Firms engaging in the activity of ‘Asset Management’, can apply to the DFSA for a Cat 3C License. Asset management, in this context, means managing client portfolios on a discretionary basis, under a client mandate.

Firms interested in managing client assets from the DIFC are required to submit applications to the Dubai Financial Services Authority, or DFSA.

Asset Management activities are discretionary in nature, and can include:

Managing Assets

Managing Assets means managing on a discretionary basis assets belonging to another Person if the assets include any Investment or rights under a contract of Long-Term Insurance, not being a contract of reinsurance.

Arranging Deals in Investments

Arranging Deals in Investments means making arrangements with a view to another Person buying, selling, subscribing for or underwriting an Investment (whether that other Person is acting as principal or agent).

Advising on Financial Products

Advising on Financial Products means giving advice to a Person in his capacity as an investor or potential investor, or in his capacity as agent for an investor or a potential investor, on the merits of his buying, selling, holding, subscribing for or underwriting a particular financial product (whether as principal or agent).

Arranging Credit and Advising on Credit

Arranging Credit and Advising on Credit means:

(a) making arrangements for another Person, whether as principal or agent, to borrow money by way of a Credit Facility; or

(b) giving advice to a Person in his capacity as a borrower or potential borrower or as agent for a borrower or potential borrower on the merits of his entering into a particular Credit Facility.

The DFSA has a fast-track process for Fund Manager licenses, which also come under Category 3C. The Fund Manager, if approved, can manage domestic (DIFC Public, DIFC Exempt Fund and DIFC Qualified Investor Fund) and Foreign Funds in other jurisdictions as well. In case the firm wishes to also engage in discretionary portfolio management services, it has to go through a full-fledged license process.

Firms that wish to engage in non-discretionary investment advice, can opt for a DIFC Investment Advisory License instead. You can read more details here.

The Dubai Financial Services Authority (DFSA) recently issued a consultation paper on the regulation of Security Tokens in the DIFC. This paper is one of the two consultation papers that will go on to make the base for the DIFC Digital Assets Regime, thus opening the gateway to a whole new world of exciting and cutting-edge fintech applications using the Distributed Ledger Technology (DLT).

The DFSA then made the relevant amendments to it’s legislation in the end of September, thus creating the framework for the regulation of Security Tokens in the centre.

Part 1 of the DIFC Digital Assets Regime covers Security Tokens. Part 2 is expected to cover Utility Tokens, Exchange Tokens and Stablecoins.

The DIFC Digital Assets Regime will be of interest to issuers of Security Tokens, Authorised Market Institutions that wish to admit Security Tokens to trading, or performing clearing and settlement services, operators of Alternate Trading Systems such as Multilateral Trading Facilities (MTF) and Organised Trading Facilities (OTF) that wish to trade Security Tokens, providers of Digital Wallets who provide custody and storage services for such tokens, technology providers and in general, any licensed firm that wishes to advise, arrange or manage crypto-assets.

This episode is also available as a blog post: https://10leaves.ae/publications/difc/difc-innovation-testing-license-dfsa-innovation-testing-license

The Innovation Testing License is a regulatory sandbox offered by the Dubai Financial Services Authority (or DFSA), which is the independent regulator of all financial services companies that seek authorisation or are currently authorised in the DIFC.

The objective of the DFSA ITL is to provide a controlled environment where startups can test innovative products and services. The ITL does not eliminate regulation, rather, it provides a gateway to innovative firms, especially startups, to test their products with live clients.

Part4 of 4

Join us for an engaging discussion with Sameer Sortur, Regional Director, Founder Institute and Sathish Jeyakumar, Founder - Veehive.ai.

We speak on the Blockchain Trilemma, and how to address the relationship between decentralization, scalability and security while designing blockchain models.

You can also watch this episode here.

Read up more on DIFC Innovation Licenses, and get in touch to be part of the UAE’s premium tech ecosystem.

For More Details, Mail us at: [email protected] or Call us at: +97142778349 or Visit us at: https://10leaves.ae/ or chat with us!

Part 3 of 4

Join us for an engaging discussion with Sameer Sortur, Regional Director, Founder Institute and Sathish Jeyakumar, Founder - Veehive.ai.

We speak on the Blockchain Trilemma, and how to address the relationship between decentralization, scalability and security while designing blockchain models.

You can also watch this episode here.

Read up more on DIFC Innovation Licenses, and get in touch to be part of the UAE’s premium tech ecosystem.

For More Details, Mail us at: [email protected] or Call us at: +97142778349 or Visit us at: https://10leaves.ae/ or chat with us!