The Dubai Financial Services Authority (DFSA) has admitted seven new companies into its regulatory sandbox.
Being a part of the cohort enables the companies to apply for an Innovation Testing Licence (ITL) and test their FinTech solutions in and from the Dubai International Financial Centre (DIFC).
A wide range of applications were received from companies aiming to join the cohort, which began its search in November last year. Markets of the applying companies included green financing, the digitisation of bond and sukuk issuances using smart contracts, SME funding platforms, robo-advisors for Islamic finance, and the tokenisation of equities and debt issuances.
While the companies have been accepted to the cohort, it is not clear who these companies are.
Having received the approval for the cohort, each of the startups can apply for an ITL – the first batch are expected to be granted in March.
One benefit of an ITL is it empowers holders to apply for a restricted financial services licence which support flexibility to test and develop solutions without having to meet regulatory requirements.
DFSA chief executive Bryan Stirewalt said, “I am particularly pleased by the mix of international and local candidates that have been successful and the wide range of technology solutions and products on offer, including Ethereum and Corda blockchains, artificial intelligence and algorithms and smart contracts development.
“The cohort also had strong representation from companies that aim to support wider Dubai and UAE objectives and government initiatives, including environmental efficiency, support for SMEs across the UAE, and the promotion of Islamic Finance.
“We shall continue to support the Dubai Government and the DIFC in the development of the Dubai FinTech ecosystem and consolidate Dubai’s role as the regional Fintech hub.”
DFSA initially launched the cohort system following a positive response over ITLs. There are two cohorts a year, with applicants needing to provide a clear explanation of their business model and any proposed innovation.
The next opportunity to be accepted into the cohort will be May 2019.
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