Dubai to grant temporary financial services licence to fintech firms

Dubai Financial Services Authority will allow fintech firms to apply for a restricted financial services license to foster innovation.

Dubai to grant temporary financial services licence to fintech firms

Dubai Financial Services Authority (DFSA) has decided to allow fintech firms to apply for a restricted financial services license to foster innovation in Dubai.

Referred to as Innovation Testing Licence (ITL), the licence will permit qualifying firms to develop and test new concepts just as any regulated firm can do.

The DFSA noted that it will work with applicants to understand the business proposal and establish the appropriate controls for the safety of any customers involved.

The licence will be valid only for six to 12 months but in exceptional cases, the regulator may consider extending the duration.

Commenting on the move, DFSA chief executive Ian Johnston said: “As regulators, it is our responsibility to provide a framework which supports the sustainable development of this industry while protecting consumers and financial stability.”

“Our efforts to develop a regulatory framework that promotes growth and innovation, while protecting financial stability and consumers, is part of our contribution to Dubai’s greater vision of becoming an information-based society and a smart city.” Johnston added.