The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has enhanced its “Guidance for the Regulation of Crypto Asset Activities”. This is the second edition to the initial guidance published in June 2018. ADGM launched the region’s first comprehensive crypto asset regulatory framework on 25 June 2018 and has since continued to actively engage with local and international market participants on various fronts to stay abreast of developments in the crypto asset space.
The updated Guidance reinforces FSRA’s focus and commitment as a financial services regulator to support innovation and maintain rigorous regulatory practice. It includes key updates in a number of areas to take into account recent global developments. Some of the details are as follows:-
Mr Richard Teng, Chief Executive Officer, FSRA of ADGM, said: “Since the launch of the crypto asset framework in June 2018, ADGM has received strong support from fellow regulators globally and significant interest from players and investors seeking to operate under the ADGM crypto asset framework. The enhanced Guidance is a response to the rapidly changing technologies and crypto asset activities that we see operating globally. From our constant engagement with international stakeholders, the enhanced Guidance sets out our active approach towards the regulation and supervision of crypto asset activities, underpinning ADGM as the choice market for crypto asset growth and development. We welcome the engagement and support of the firms establishing their operations within ADGM who are looking to achieve their own growth and success.”
Under its crypto asset framework, the FSRA regulates entities operating crypto asset businesses, including activities undertaken by crypto asset exchanges, custodians and other intermediaries. ADGM’s robust framework addresses 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 FSRA is preparing further guidance on digital securities for primary and secondary market consideration.
The FSRA regularly reviews and updates its financial services rules and regulation to maintain a robust and highly effective market. To access the Guidance, Application Form and FSRAs Regulations and Rules, please click on the links below: