Last month, Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA) held a public consultation regarding the development of a crypto regulatory framework for streamlining alt-asset trade and exchange. Now, the ADGM has released a framework which has been designed for all types of crypto-related activities that can be carried out by custodians, exchanges, and intermediaries.
Addressing All Crypto Asset Risks
Reports indicate that the legislative framework will attempt to address all of the risks associated with the digital currency market, including consumer protection, exchange operations, custody protocols, money laundering and criminal financing.
According to Richard Teng, CEO of the regulatory authority:
“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.”
An interesting development within the newly established regulatory framework concerns a Daily Value Trading Levy, which has been imposed on cryptocurrency exchanges through the use of a sliding scale fee model. Additionally, a paper entitled ‘Guidance-Regulation of Crypto Asset Activities in ADGM’ has also been published, alongside with the introduction of an application form for those who wish to start a crypto-based business in Abu Dhabi.
With this in mind, all constructive comments issued during the public consultation have been taken into account, hence leading to the development of a complete, yet just framework for crypto businesses.
Looking to advertise? We will gladly help spread the word about your project, company, or service. CryptoMode produces high quality content for cryptocurrency companies. We have provided brand exposure for dozens of companies to date, and you can be one of them. All of our clients appreciate our value/pricing ratio. Contact us if you have any questions: [email protected]