Abu Dhabi Regulator Introduces Its Crypto “Guiding Principles”

The Financial Services Regulatory Authority (FSRA), the financial regulator of the Abu Dhabi Global Markets Free Economic Zone (ADGM), has released “Guiding Principles” on its approach to digital asset regulation.

These principles are crypto-industry-friendly, committing to adherence to international standards in anti-money laundering (AML), combating the financing of terrorism (CFT) and supporting financial sanctions.

The five principles are post There is no date indication on the official ADGM webpage. They are titled internationally recognized regulatory framework, dynamic and market-oriented regulation, risk-focused and proportionate approach, cooperation and shared responsibility, delivering high standards of quality and service.

While the tone and content of the principles generally correspond to standard statements that make markets more dynamic, innovative and secure, there are also specific points that define the regulatory landscape for ADGM.

In accordance with these principles, the legislative framework for ADGM will be based on English common law. In the economic zone, the regulator, registry and court functions will operate completely independently, and the board will appoint a supervisory committee to ensure supervisory independence.

As liberal as it sounds, these premises will be complemented by compliance with international AML/CFT standards, close cooperation with other jurisdictions, and “financial sector surveillance” as part of the FSRA’s function.

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The regulator also intends to work closely with market participants on a “regular but informal” basis. This will include one-on-one meetings between regulatory and business teams and working groups of market participants and professionals.

March 2022, ADGM Publish consultation paper Proposed to allow licensed companies to facilitate non-fungible token (NFT) transactions within the jurisdiction. In April, Binance and Kraken became first foreign company Obtain regulatory approval to operate at ADGM.