Amid the regional lack of blockchain legal regulation, Abu Dhabi Global Market finally released a framework to allow smooth crypto-penetration in the Emirati markets.
Abu Dhabi Global Market (ADGM), the Emirati capital's international financial centre, launched its framework to regulate spot crypto asset activities on Monday, June 25th. The framework includes crypto asset activities undertaken by exchanges, custodians and other intermediaries in ADGM. This comes after a public consultation held by ADGM Financial Services Regulatory Authority (FSRA) on 28 May to introduce and discuss a robust crypto asset regulatory framework.
“Globally, responsible crypto asset players are seeking a regulatory regime upholding high standards that foster market confidence," says Richard Teng, the CEO of the FSRA, introducing the regulatory framework. "By introducing a comprehensive and best-in-class regulatory framework, the FSRA is taking a leading role in instilling proper governance, oversight and transparency over crypto asset activities, positioning ADGM as a destination of choice for crypto asset players. Our engagement with fellow global regulators also validated our position that the key risks highlighted have to be addressed for crypto assets to be more widely accepted and institutionalised.”
Blockchain is known to be surrounded by many risks and financial insecurities. "We need to pay taxes, we need to avoid anti-money laundry issues, we need to avoid other issues related to securities," Egyptian blockchain entrepreneur Nour Hardy told Startup Scene ME earlier. Middle Eastern governments are among many falling behind in terms of working with blockchain developers. With ADGM's framework, Abu Dhabi aspires to become the pioneer government to support blockchain by addressing the full range of risks associated with crypto asset activities, such as risks of money laundering and financial crimes, consumer protection against infamous ICO scams for example, technology governance, custody and exchange operations.
The FSRA also published its "Guidance - Regulation of Crypto Asset Activities in ADGM" and application form for interested applicants to operate a crypto asset business within ADGM.
If you're interested in joining forces with the ADGM, you can check out the application here.
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