On June 25th, new regulatory guidelines for cryptocurrencies were launched by the Abu Dhabi Global Market’s Financial Services and Regulatory Authority (FSRA), and according to sources, the ambit of the framework will also include the crypto industry including intermediaries and exchanges.
The ADGM (Abu Dhabi Global Market) launched a regulatory guideline for cryptocurrencies in accordance with the Financial Services and Market Regulations act (2015). The main aim is to tackle various predicaments while trading crypto assets. It will also structure security measures to assist traders with asset recovery in case of a loss.
Abu Dhabi has come up with solutions for tokens considered to be securities, and are being regulated accordingly. The new regulation will see crypto assets as commodities and utility tokens.
It also has solutions for tokens considered to be securities, and have laid a few guidelines for it. It will now see crypto assets as commodities and utility tokes.
ADGM CEO, Richard Teng said:
“The framework is designed to address the full range of risks associated with crypto asset activities, including risks relating to money laundering and financial crime, consumer protection, technology governance, custody and exchange operations. 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.”
Their press release states that the guidelines were established with the recommendation of the wider community. It also stated that the public has appreciated the framework both locally and globally and gave in a sanguine feedback.
The ADGM was always open to suggestions and this was clear by how it responded to the suggestions. It amended the framework quite a few times and one such instance is the implementation of a trading tax.
Even though crypto trading was technically banned by the Sharia law, the country has started to develop an interest in the industry. Even though the technology is slowly being accepted in the region, the concepts offered by blockchain and cryptocurrency being established here, show a move towards adoption.