Abu Dhabi Global Market has launched a new crypto-asset framework to develop a safer marketplace for digital currencies.
Earlier this year, regulatory authorities in Abu Dhabi proposed a legislative framework to bring order to the crypto asset markets in the region.
To help the industry, The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) published a consultation paper setting out its proposed framework to regulate spot crypto asset activities, including exchanges, custodians and other intermediaries, to be undertaken in ADGM.
The new framework, which has officially launched, aims to regulate spot crypto asset activities, including those undertaken by exchanges, custodians and other intermediaries in ADGM.
It 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.
This launch 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) on 28 May 2018.
Mr Richard Teng, CEO, FSRA of ADGM, said: “We are encouraged by the significant global and regional interest from exchanges, custodians, intermediaries and other institutions to our crypto spot regulatory framework. 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. 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 initiative was launched in close collaboration with a key team of the UAE’s largest financial institution, including the Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Ansari Exchange, Al Fardan Exchange, First Abu Dhabi Bank, UAE Exchange and ADGM. It aims to develop a proof-of-concept to decide the governance framework and the functional requirements of the e-KYC utility, with distributed ledger technologies being considered to underpin core functionality within the platform.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
