Crypto Regulatory Framework Launched By Abu Dhabi Global Market

News, Regulation | June 26, 2018 By:

Abu Dhabi Global Market (ADGM), the international financial center of the region, has launched its regulatory framework for spot crypto asset activities.

The announcement follows the successful completion of a public consultation on the introduction of a robust crypto asset regulatory framework by ADGM Financial Services Regulatory Authority (FSRA) last month. According to the ADGM, feedback to the public consultation has been very positive, with local and global respondents highlighting the comprehensive nature of the proposed regulatory framework.

The new regulatory framework will 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. The framework will also implement a Daily Value Trading Levy that will be imposed on crypto asset exchanges on a sliding scale basis.

Richard Teng, Chief Executive Officer, FSRA of ADGM, said they are encouraged by the significant global and regional interest from exchanges, custodians, intermediaries and other institutions to their crypto spot regulatory framework.

“Globally, responsible crypto asset players are seeking a regulatory regime upholding high standards that foster market confidence,” Teng said. “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.”

The new framework is one of ADGM’s many efforts and ongoing commitment to bolster the economic diversification of Abu Dhabi through innovation and sustainable initiatives. The FSRA has also published its ‘Guidance – Regulation of Crypto Asset Activities in ADGM’, which elaborates ADGM’s approach towards the regulation of crypto asset activities.