When several jurisdictions remain ambivalent on whether staking is a security or falls into a gray zone, the Financial Services Regulatory Authority (FSRA) provides clarity by regulating staking. The FSRA of Abu Dhabi Global Market (ADGM) has recently published a proposed regulatory framework for staking virtual assets, including cryptocurrencies.
Building on earlier foundations
The proposal on the regulatory framework for virtual assets did not start from scratch. FSRA has already begun proposing ideas through Consultation Paper No. 11 of 2024. Now they are taking these initial thoughts to develop them into a complete formal regulatory framework.
In the latest proposal, Consultation Paper No. 10 of 2025, the regulatory body has clearly outlined the categories of authorized persons/regulated firms that would be legally allowed to be involved in staking activities. These regulated firms would not be staking their own crypto; instead, they would be staking assets of their clients. And, this process needs strong safeguards, including requirements governing these activities.
Advancing ideas on virtual asset staking
Bringing a proper framework would give more authority to ADGM and clarity over virtual assets staking in the region, driving more investor confidence. Suggestions and ideas from large firms alone are not sufficient to bring a comprehensive regulatory framework.
Recognizing the importance of public opinion, the FSRA has invited individuals to provide their feedback on the proposal before the consultation closes on October 31, 2025.
Institutional confidence and capital inflows
If the regulatory framework comes into existence, institutional investors like banks and fund managers can confidently invest in firms providing virtual assets staking services. The framework can also unlock potential capital inflows by encouraging firms and institutions to stake their digital assets through regulated entities.
FSRA’s proposal for a regulatory framework on virtual asset staking has high potential for Abu Dhabi to compete in the global virtual asset space. A measured, rule-based approach is a cornerstone for the reputation and long-lasting nature of a framework. By cultivating transparency, investor confidence, and operational integrity, ADGM’s regulatory authority is laying the base for a strong digital asset ecosystem.
