Dubai’s regulators for real estate and cryptocurrency have entered into a collaborative agreement to investigate the tokenization of property registration and management.
The authorities overseeing land and virtual assets in Dubai have finalized a new accord aimed at facilitating the tokenization of real estate and enhancing regulations concerning cryptocurrency use in property transactions. This comes in light of a pilot program intended to link property tokenization with the existing real estate registry.
In a recent announcement, the Dubai Land Department stated that it has partnered with the Dubai Virtual Assets Regulatory Authority to merge real estate registration with tokenization through a governance framework that “boosts market liquidity and increases the efficiency of property management companies.”
Officials have indicated that this initiative could simplify access to the real estate market for small investors, potentially fostering growth in the sector.
Helal Saeed Al Marri, Director-General of the Dubai Department of Economy and Tourism, remarked that this collaboration underscores a commitment to “future-oriented innovation.” He noted that this partnership aligns with the goals of the Dubai Real Estate Strategy 2033 and the Dubai Economic Agenda D33, which aim to solidify Dubai’s position as a global leader in this essential sector.
Earlier in February, it was reported that the Virtual Assets Regulatory Authority intends to mandate licensed crypto issuers and service providers to reveal the identities of significant crypto holders, or “whales,” particularly when a substantial percentage of tokens is dominated by a creator or organization. The agency’s head, Matthew White, suggested that such transparency could enable investors to make more informed decisions given that numerous tokens are controlled by entities like venture capital firms.