The financial services regulatory authority (FSRA) of Abu Dhabi Global Market proposes regulations for spot crypto asset markets.
In а newly published consultation paper the authority is setting out a framework to regulate crypto activities, including exchanges, custodians and other intermediaries.
According to the FSRA, it’s a “fit-for-purpose regulatory framework that effectively addresses the full range of risks associated with crypto asset activities." For crypto asset exchanges, it will entail proper regulation as market infrastructures addressing key risks including anti-money-laundering and counter-terrorist financing, consumer protection, technology governance and safe custody.
“This best-in-class regime addresses concerns from regulators, institutions, corporates and investors by instituting proper oversight over crypto asset activities, and instilling the requisite integrity and confidence needed that is largely absent from the global arena,” FSRA marks.
Richard Teng, CEO of FSRA of ADGM says that the framework is meant to “continue developing a stable and sustainable financial services sector in Abu Dhabi and the UAE, while fostering innovation with risk-proportionate regulatory safeguards."
“In our outreach and engagement, many established and responsible participants engaged in crypto asset activities are seeking to be properly regulated by observing high standards on customer protection, custody and technology governance. By providing a best-in-class regime, this addresses concerns of regulators and investors alike, particularly institutional investors seeking to gain exposure to this asset class. Our proposed regulatory regime is only possible with our deep understanding and knowledge of the solutions available to address the respective risks and represents the most comprehensive regime proposed by global regulators so far,” Richard Teng notes.
By Ksenia Batanova