Business

In a strategic move to foster innovation in financial services, the Dubai Financial Services Authority (DFSA) has released a new explainer guide for its Innovation Testing Licence (ITL) – a key initiative aimed at supporting startups and established firms testing new financial technologies in or from the Dubai International Financial Centre (DIFC).

The explainer guide has been launched ahead of the highly anticipated Dubai FinTech Summit 2025, scheduled for 12–13 May, where the DFSA will spearhead crucial discussions on topics such as tokenisation, crypto regulation, AI, and cybersecurity.

The Innovation Testing Licence, introduced in 2017, serves as the DFSA’s regulatory sandbox. It provides a restricted licence enabling eligible firms to test innovative financial products, services, and business models within a monitored environment. Firms benefit from temporary regulatory relaxations while remaining under close DFSA supervision.

The newly launched guide is designed to help firms:

• Understand the purpose and benefits of the ITL.

• Determine eligibility criteria.

• Navigate the application and authorisation process.

• Comply with obligations during the testing phase.

Justin Baldacchino, Managing Director of Supervision at DFSA, commented:

“As the financial sector continues to evolve at pace, we recognise the importance of supporting innovation with clear and transparent regulatory guidance. The explainer guide is designed to demystify the process and empower innovators with the knowledge they need to engage with the DFSA and bring transformative financial services to market in the DIFC.”

The guide underscores the DFSA’s commitment to responsible innovation while maintaining regulatory clarity and market confidence.

DFSA at the Dubai FinTech Summit 2025

At the upcoming summit, the DFSA will:

• Lead the Regulatory Forum on Day 1, guiding global dialogue on regulatory innovation.

• Host the Cyber and AI Regulatory College, gathering experts from academia, industry, and international regulators.

• Engage with delegates at the DIFC exhibition stand to discuss the ITL, Tokenisation Regulatory Sandbox, crypto oversight, and more.

• Facilitate roundtable discussions on crypto regulation (co-hosted with the Global Blockchain Business Council), wealth management, and sustainable finance.

The DFSA will also share key outcomes from its Tokenisation Regulatory Sandbox’s Expression of Interest, reflecting its proactive role in building regulatory frameworks for tokenised and digital finance.

The Innovation Testing Licence explainer guide is now accessible via the DFSA website. Applications are accepted year-round, with decision timelines typically ranging from 10 to 12 weeks, depending on submission quality and applicant responsiveness.

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