Regulated Peer-to-Peer (P2P) Trading

A regulated peer-to-peer (P2P) trading platform enables clients to post bids and ask quotes directly and trade digital assets against fiat currency. According to AFSA requirements, regulated P2P trading is only permitted on DATFs licensed by the AIFC. The DATF ensures the security of settlements by requiring pre-depositing and locking of digital assets until the settlement is complete. It also guarantees centralised fiat settlement or ensures the reconciliation of the fiat side of the transaction.  

AFSA permits P2P trading in a sandbox environment under specific conditions:

• The platform must be licensed as a DATF under AFSA’s sandbox regime. 
• The DATF must hold custody-type permissions as required by AFSA for secure asset holding.
• Clients must complete Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
• Fiat transactions must be processed via AFSA-approved banks.

The up-to-date list of AFSA-licensed digital asset exchanges, including information on whether they are permitted to offer P2P trading services, can be found at: publicreg.myafsa.com/fintech/