[ad_1]
Abu Dhabi Global Markets’ financial regulator, the Financial Services Regulatory Authority (FSRA), has released “Guiding Principles” on its approach to virtual asset regulation, outlining its expectations for the industry’s asset class and service providers.
These principles are an easy-to-understand and easy-to-follow addition to ADGM’s comprehensive regulatory framework for spot virtual asset activity. They also aim to foster greater regulatory cooperation and cohesion between the FSRA and other authorities in the UAE and globally.
The principles also inform the investor community and the public about what regulatory action the FSRA can take to identify and address potential risks.
These principles describe the FSRA’s risk appetite and the industry’s priorities, each covering one of the key pillars of ADGM’s overall approach, namely: a robust and transparent regulatory framework; high standards of authorisation; prevention of money laundering and other financial crime; risk-sensitive regulation; enforcement powers for regulatory non-compliance; and its commitment to international cooperation. As such, they are of particular relevance to potential applicants to ADGM and other regulators interested in the field.
Emmanuel Givanakis, CEO of FSRA, said: “These guidelines will provide investors, other regulators, industry and the wider public with a clearer understanding of our regulatory approach in this area and our view of current virtual asset service providers in ADGM. Key expectations and potential applicants. They also outline the tools we can use to mitigate the significant risks posed by these activities, as well as the regulatory powers to identify and act on any misconduct.
“Consistent with the FSRA’s broader strategy of aligning with international best practice, these principles define the high standards of our framework in the face of increased volatility and regulatory focus.”
In recent news, ASGM and the Abu Dhabi Residents Office (ADRO), a division of the Abu Dhabi Department of Economic Development, have signed a partnership agreement to support ADGM’s international members through digital visa services and other initiatives.
read: ADGM, ADRO in Abu Dhabi strengthen support for ADGM international community
[ad_2]
Source link