Abu Dhabi Global Market (ADGM) has launched a framework to regulate spot crypto asset activities undertaken by exchanges, custodians and other ADGM intermediaries.
The announcement follows a public consultation on the introduction of the crypto asset framework which was conducted by the ADGM Financial Services Regulatory Authority (FSRA), which the ADGM said resulted in “very positive” feedback.
According to ADGM, the framework is designed to address the full range of risks associated with crypto asset activities, including risks related to money laundering, financial crime, consumer protection, technology governance, and custody and exchange operations.
#RichardTeng, CEO of #ADGM #FSRA “Responsible #cryptoasset players are seeking a robust #regulatory regime that instills #governance, #oversight & #transparency over related activities. We thank our stakeholders & market participants for their support to our regulatory framework” pic.twitter.com/B9HNLISDrl— ADGM سوق أبوظبي العالمي (@ADGlobalMarket) June 25, 2018
Among the changes that took place as a result of the consultation were the implementation of a daily value trading levy imposed on crypto asset exchanges on a sliding scale basis.
“We are encouraged by the significant global and regional interest from exchanges, custodians, intermediaries and other institutions to our crypto spot regulatory framework,” said Richard Teng, CEO of ADGM’s FSRA.
“Globally, responsible crypto asset players are seeking a regulatory regime upholding high standards that foster market confidence.”
“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,” he added.
“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 FSRA today 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.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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