Abu Dhabi’s financial regulator, the Financial Services Regulatory Authority (FSRA), is carrying a progressive marketing standpoint but also assures to obey the global standards of safety. FSRA has published its regulatory rules, for managing and controlling digital assets.
These regulatory principles are easygoing, as well as demand the users to follow international standards in combating the financing of terrorism (CFT) and Anti-Money Laundering (AML) as well as endorsing economic sanctions. The official webpage of Abu Dhabi Global Market – ADGM – published 5 regulatory rules. Different titles were given to these principles according to their nature.
Abu Dhabi’s Regulatory Authority Presents Guiding Principles to Deal with Crypto
The general nature and subject matter of regulatory principles comply with universal standards. These guiding principles aim at turning the native marketplace into more vigorous, unprecedented, and secure. Moreover, a few points were for the description of ADGM’s prospects in the regulatory landscape. Following regulatory principles, the legislative system proposed by Abu Dhabi Global Market will be established on English Common Law.
In the department of finance, the court, legislator, and Registrar will be working as a unit independently, under the supervision of a regulatory committee elected on the behalf of the board for maintaining checks and balances. As progressive as these principles seem, they will be augmented by adherence to international AML/CFT parameters, along with a close association with the jurisdictions of other territories, and scrutiny of the financial department, as included in the action plan of the FSRA.
The Regulatory Agencies to Take an Additionally Stringent Approach to Crypto
The regulators are also instructed to become more strict to cooperate with market members in an informal but regular manner. These encounters will consist of one-to-one sessions among the business groups, regulators, workers, professionals, and the members of the market.
Abu Dhabi Global Market – in March this year – issued a consultation paper. In that paper, the organization made it clear that only those organizations will be permitted to carry out the trading of non-fungible tokens (NFTs) which possess a license provided by the authorities within the boundaries of the Emirate’s jurisdiction.
In April 2022, both Kraken and Binance turned into the earliest platforms operating internationally to receive licenses from the regulatory bodies working in the area for doing their operations within ADGM. Abu Dhabi is taking diverse initiatives to get prominence apart from the crypto sector and it is going to host the initial Games for Change Summit from 11th October onwards. At that summit, international experts will also be present to discuss gaming innovations.
Disclaimer: NFTs and Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors (namely Business Voices content) and the views expressed in these types of posts do not reflect the views of this website. Please read our full disclaimer here.