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    Abu Dhabi authority amends digital asset regulatory framework 

    The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) announced the execution of amendments to its digital asset regulatory framework to make the existing regulations easier for investors and businesses. With the latest changes, ADGM authorities aim to make rules more practical alongside refinements to capital requirements and fees for companies in the jurisdiction. 

    What does the amendment focus on?

    The authorities added that the amendments also improve the process of accepting virtual assets, and once approved, these assets will be known as Accepted Virtual Assets (AVAs). Furthermore, the revision brings “a specific product intervention power” related to virtual asset firms, meaning the financial institution now has the legal power to mediate in cases where crypto products pose a threat to the crypto market or investors. 

    Worth noting, ADGM is formally writing rules to ban privacy coins and algorithmic stablecoins. However, the financial centre took a positive approach towards Venture Capital (VC) funds, allowing it to expand the scope of investment.              

    Following the announcement, Emmanuel Givanakis, Chief Executive Officer of ADGM, stated that the recent updates put ADGM as a premier jurisdiction for digital asset-related activities.

    “Through extensive consultation with industry stakeholders, we have further enhanced our framework to provide the regulatory certainty that industry participants need, while addressing the evolving risks of the digital asset ecosystem”, added Givanakis. 

    ADGM’s regulatory framework consists of rules related to technology governance, custody and exchange operations, investor protection, and a spectrum of VA-associated risks, including market abuse and crime.   

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