Investors understandably seek some assurance when investing in digital platforms. With that in mind, it’s important to consider: How is your investment protected in the unlikely event of PRYPCO Blocks closing down?
PRYPCO Blocks is regulated by the Dubai Financial Services Authority (DFSA). So, in the unlikely event of the platform shutting down, PRYPCO Blocks keeps your investments safe by complying with the client money measures of the DFSA. These provisions include keeping client money separate, maintaining records, and reporting to regulators. These rules safeguard clients’ assets and promote market integrity.
Continue reading the blog to learn more about how your investments are kept safe
Dubai Financial Services Authority (DFSA)
What is it?
DFSA is an independent regulatory authority responsible for overseeing and regulating the financial services industry in Dubai.
The legal framework of DFSA has two primary laws: the DFSA law, which establishes the DFSA as an independent regulatory authority and sets out the objectives, powers, and functions of the DFSA. The second is the company law, which controls the establishment, operation, and regulation of companies.
The regulatory approach of DFSA
As the DFSA uses a risk-based supervisory framework, the degree of risk created by financial institutions and their operations determines how important regulatory actions should be prioritised.
The DFSA also conducts ongoing supervision and monitoring of regulated entities to ensure compliance with applicable laws, regulations, and standards.
Licensing and authorisation
The Dubai Financial Services Authority is responsible for licensing and authorising financial institutions registered under it. PRYPCO Blocks functions as a منصة تمويل جماعي under a commercial licence regulated by the Dubai Financial Services Authority.
Before granting licences, the DFSA assesses the fitness and suitability of applicants, ensuring investors are served effectively and responsibly.
Special Purpose Vehicles
Apart from being regulated by the Dubai Financial Services Authority, your property investments are also kept safe by setting up a Special Purpose Vehicle that owns the property.
What is a Special Purpose Vehicle?
A Special Purpose Vehicle (SPV) is a legal entity created for a specific purpose separate from the sponsoring company. In the case of بريبكو بلوكس:, every property is acquired through a special-purpose vehicle so that all investors in the property are legally registered owners of the company and therefore the property.
How does it keep investors’ money safe?
By creating an SPV, ownership is transferred to those who have invested in the property. It separates the operations of PRYPCO Blocks from the property, and therefore, if PRYPCO Blocks were to shut down, the investors would still keep ownership of the property.
DFSA’s robust regulatory framework and creation of an SPV ensure that your investments are kept safe. It is important to note that PRYPCO Blocks does not own any of the property; it’s YOU who OWNS it.
