The Dubai Financial Services Authority (DFSA) has signed an agreement with the Commission de Surveillance du Secteur Financier (CSSF) Luxembourg to foster fintech innovation in both jurisdictions.
The two regulators have agreed to establish cooperation to support fintech growth in Dubai and Luxembourg. In addition, they have agreed to exchange information on regulatory and financial services innovation, according to media reports. This means that both DFSA and CSSF will offer regulatory support to boost each other’s fintech landscape.
The new cooperation is established on the existing agreement between DFSA and CSSF. DFSA chairman Saeb Eigner, told the media that, “The DFSA and the CSSF are actively engaged in the development of fintech giving the market confidence through fair and proportionate regulation. We firmly believe that cooperation with the CSSF is paramount to creating a more stable and innovative financial services.”
Previously, DFSA had established cooperation with Monetary Authority of Singapore and Financial Services Agency to make the UAE a global hub for innovation.
Currently, Dubai is witnessing unprecedented change with emerging startups and accelerators building a sustainable fintech ecosystem. Some of the popular accelerators include Dubai Smart City Accelerator, Dubai Future Accelerators and DIFC’s Fintech Hive. They help to assemble stakeholders, financial institutions, government entities and startups to explore opportunities and address key challenges.
The DIFC has made a series of investments to support regulation, infrastructure and funding opportunities. For example, it is committed to invest $100 million into early stage fintech startups through a dedicated fintech fund.
Likewise, Luxembourg aims to position itself as a leader in digital financial services, with more than 140 banks and 2000 ICT firms. The Luxembourg financial centre is home to some of Europe’s largest investment funds.