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|26 June, 2018

Abu Dhabi Global Market launches crypto asset regulatory framework for the MENA region

The new ADGM crypto framework instils proper governance, oversight and transparency over crypto asset activities

Abu Dhabi Global Market launches crypto asset regulatory framework for the MENA region

Abu Dhabi UAE: Abu Dhabi Global Market (ADGM), the International Financial Centre in Abu Dhabi, has today launched its framework to regulate spot crypto asset activities, including those undertaken by exchanges, custodians and other intermediaries in ADGM.  This 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.  

The framework 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 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.

Feedback to the public consultation has been very positive, with local and global respondents highlighting the comprehensive nature of the proposed regulatory framework. Taking into account constructive comments from these respondents, several refinements have been made to the regulatory framework, with a key change being the implementation of the Daily Value Trading Levy imposed on Crypto Asset Exchanges on a sliding scale basis.

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Mr Richard Teng, Chief Executive Officer, 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 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. The Guidance elaborates on ADGM’s approach towards the regulation of crypto asset activities and is a useful resource for interested applicants.  

To access the Guidance, Application Form and FSRA’s Regulations and Rules, please click on the links below:

Guidance: www.adgm.com > Financial Services Regulatory Authority >ADGM Legal Framework > Guidance and Policy  

Application Form: www.adgm.com > Financial Services Regulatory Authority >Being a Firm>Authorisation and Supplementary Forms

FSRA Regulations and Rules: www.adgm.com > Financial Services Regulatory Authority >ADGM Legal Framework > ADGM Legislation >FSRA Regulation & Rules

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About Abu Dhabi Global Market

Abu Dhabi Global Market (ADGM), an international financial centre (IFC) located in the capital city of the United Arab Emirates, opened for business on 21 October 2015. Established by UAE Federal Decree as a broad-based financial centre, ADGM augments Abu Dhabi’s position as a global hub for business and finance and serves as a strategic link between the growing economies of the Middle East, Africa and South Asia and the rest of the world.

ADGM’s strategy is anchored by Abu Dhabi’s key strengths including private banking, wealth management, asset management and financial innovation. Comprising three independent authorities: ADGM Courts, the Financial Services Regulatory Authority and the Registration Authority, ADGM as IFC governs the Al Maryah Island which is a designated financial free zone. It enables registered financial institutions, companies and entities to operate, innovate and success within an international regulatory framework based on Common Law.  Since its inception, ADGM has been awarded the “Financial Centre of the Year (MENA)” for two consecutive years for its initiatives and contributions to the financial and capital markets industry in the region.*

For more details of ADGM, please visit www.adgm.com or follow us on Twitter : @adglobalmarket and Linkedin : ADGM

* Source : The Global Investor Middle East and North Africa (MENA) Awards

For further enquiries, please contact:

Joan Lew, Senior Manager, Communications

Email: joan.lew@adgm.com, Telephone: +971 2 333 8858

Online: www.adgm.com

© Press Release 2018

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