Abu Dhabi: The Financial Services Authority (FSRA) of Abu Dhabi Global Market (ADGM) today announced the implementation of amendments to its regulatory framework for digital assets, with immediate effect. The implementation of these amendments follows extensive industry engagement and feedback received on Consultation Paper No. 11 of 2024.
According to Emirates News Agency, the focus of the implemented amendments is on revisions to the process whereby Virtual Assets (VAs) are accepted for use as Accepted Virtual Assets (AVAs) in ADGM, alongside appropriate capital requirements and fees for Authorised Persons conducting Regulated Activities in relation to VAs (VA Firms).
The amendments also introduce a specific product intervention power in relation to VAs as well as enshrining rules that confirm the existing approach to the prohibition of using privacy tokens and algorithmic stablecoins within ADGM. Finally, the amendments expand the scope of investments in which Venture Capital Funds may invest.
The FSRA has updated the Guidance - Regulation of Virtual Asset Activities in ADGM to reflect the implemented measures and to provide further guidance to VA Firms in relation to applying the AVA assessment criteria.
Emmanuel Givanakis, Chief Executive Officer of ADGM's FSRA, stated that the implementation of these changes marks a significant milestone in the evolution of the FSRA's framework for digital asset regulation. Through extensive consultation with industry stakeholders, the framework has been further enhanced to provide the regulatory certainty that industry participants need, while addressing the evolving risks of the digital asset ecosystem.
The FSRA believes that this further positions ADGM as a premier jurisdiction for digital asset-related activities and demonstrates a commitment to fostering responsible innovation in financial services.
The FSRA acknowledges the constructive and well-received feedback in response to the Consultation Paper, including in relation to the discussion points raised.