Abu Dhabi Global Market issues new guidelines on digital assets

The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) issued a set of guidelines for digital securities to support the development of crypto assets within the financial centre.

It provides clarity on ADGM's regime following recent technological advances, focusing on initial offerings, listing, trading and custody of digital securities. The regulations also provides a "road map for entities to efficiently and smoothly migrate into conducting digital securities activities" within the centre, according to a Thursday statement from the authority.

"It is important that we continue to stay ahead of the curve, as a progressive nation and economy, by responding to the dynamic needs of our local environment and anticipating the developments and impact of the global marketplace," said Ahmed Al Sayegh, UAE Minister of State and executive chairman of ADGM. "As an international finance centre, ADGM has been actively playing a strategic role in creating new financial opportunities and initiating unique business propositions that benefit our local businesses and global partners."

Richard Teng, chief executive of FSRA, said the guidance on digital securities "provides technologically advanced industry players with the transparency and certainty required to effectively operate in a best-in-class regulatory environment".

"We welcome the continued engagement and support of the firms establishing, or seeking to widen, their operations within ADGM, and those that wish to add digital assets to the collection of Abu Dhabi’s diversifying and deepening capital market.”

The FSRA said the new rules complement the guidance on initial coin and token offerings and other crypto assets issued in October 2017, and the Crypto Assets Regulatory Framework published in June last year.

ADGM is positioning itself as an attractive destination for financial technology companies and is attempting to foster a regulatory environment that promotes innovation. It has granted in-principle approval to operators of a number of crypto asset exchanges this year, including Dex Exchange, Matrix Exchange and BitOasis.