The UAE Securities and Commodities Authority (SCA) has released a draft regulation for security and commodity token contracts and is seeking feedback. The regulation includes guidelines for both security tokens, which represent financial or tangible assets, and commodity tokens, which represent physical commodities. These tokens can be traded on blockchain platforms and transfers are subject to registration agreements. The SCA also signed an agreement with Dubai's Virtual Assets Regulatory Authority (VARA) in 2024, requiring virtual asset service providers to obtain a license from VARA if operating in Dubai. The regulation in the UAE comes as the U.S. Securities and Exchange Commission (SEC) establishes a task force to develop a regulatory framework for crypto assets.



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