IFSCA regulations Tokenization of Real-World Assets

IFSCA has issued Regulatory Approach towards Tokenization of Real-World Assets. The intent of the proposed regulatory approach towards tokenization of assets is to:

1. Provide legal and regulatory recognition to ‘digital tokens’, representing rights of ownership or beneficial interest in underlying real-world assets.
2. Develop a suitable framework for efficient market infrastructure to be put in place, supporting the digital token market.
3. Identify the activities to be regulated in the digital token market and suitably calibrate the regulatory requirements to be imposed on the entities performing regulated activities in a proportionate and risk-based manner.
4. Evolve an appropriate risk management framework for the digital token market, with special focus on AML/KYC, governance, technology and cyber risks.
5. Address investor protection concerns and impose adequate standards of due diligence, disclosure and grievance redressal on the entities performing regulated activities in the digital token market.
6. Foster continuous innovation and growth in the tokenization space, including by means of regulatory dispensations, self-regulation and disclosure-based regime.