Abu Dhabi Securities Exchange (ADX) in cooperation with the Central Depository of the Emirate and the International Securities Services Association (ISSA), intends to create an infrastructure for issuing cryptocurrency assets and promoting the blockchain technology in the emirate. It is worth noting that this is the third largest stock exchange in the Arab world in terms of market capitalization.
ADX and ISSA have published a document aimed at creating the infrastructure necessary to accommodate transactions using cryptocurrency assets and to promote the implementation of a distributed register technology in the UAE. According to the data, the exchange is ready to support and advise financial institutions that plan to provide services related to the crypto industry or move from traditional assets to digital instruments.
ADX also believes that virtual assets have great potential for development in the region. Therefore, the exchange plans to determine the technical and operational criteria necessary for issuing crypto assets and to provide support to financial institutions in managing this process.
Rashed Al Blooshi, ADX CEO, believes that Abu Dhabi needs to modernize the infrastructure of its financial market.
"Financial market infrastructure plays a pivotal role in supporting crypto markets, offering investor protection, preventing market fragmentation, as well as making it possible for financial institutions to provide advanced services in the field of crypto-assets,” he explained.
Al Blooshi also noted that ADX supports innovative technologies and is always looking for ways to implement the achievements of the fintech industry, especially those related to cryptocurrencies. And this statement has every reason. In June, it became known that the British fintech startup Equichain will advise the Abu Dhabi Stock Exchange on the use of new technologies, including the blockchain. ADX is studying the use of blockchain platforms and Equichain products to improve the speed and security of capital market transactions. The goal of this initiative is to seamlessly connect the two ends of the institutional investment spectrum using the blockchain, representatives of the exchange explained.
The Emirates are generally very open to cryptocurrency and blockchain. Smart Dubai, an initiative group, actively explores the capabilities of the distributed register technology and introduces them into various areas of government and other activities. It also became known recently that the United Arab Emirates intend to legalize the ICO and recognize cryptocurrency securities in 2019.
“The board of the Emirates Securities & Commodities Authority has approved considering ICOs as securities. As per our plan we should have regulations on the ground in the first half of 2019,” said Obaid Saif al-Zaabi, Acting Chief Executive Officer of the Securities and Commodities Authority (SCA).
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