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This Financial Services Regulatory Authority Principal Financial Regulatory Authority (FSRA) in Abu Dhabi Global Market Free Economic Zone (ADGM) disclose New principles guiding its control of virtual assets. The principles issued by the FSRA take an industry-friendly tone, implying that the industry will increase innovation.
FSRA’s first priority is the need to create a framework that is consistent with best practice in international financial services around the world. As a result, digital asset service providers can be prepared to comply with internationally accepted financial reporting rules and to comply with sanctions imposed on wrong jurisdictions.
“ADGM’s rules and regulations will be based on principles and, where appropriate, supplemented by specific and detailed rules to guide market conduct and industry players,” reads the guide.
To achieve this, the Authority says the rules will be applied fairly and experienced professionals “will deploy a wide range of properly calibrated regulatory solutions”.
While these principles promise to be dynamic and innovative, there are also provisions to adhere to “risk appropriate standards”. Financial institutions with multiple entities in the structure will take a consolidated approach while putting the interests of consumers ahead of other players.
FSRA is committed to upholding the principles of cooperation and shared responsibility without deviating from the local character of the UAE. The final aspect of the Guiding Principles is the reaffirmation of providing high standards of quality and service and the determination to punish companies that violate the standards.
“When its rules and regulations are breached, the regulator will take immediate steps to mitigate any immediate risk of market contagion or adverse effects on consumers,” reads the guidance. “A detailed investigation will be conducted and disciplinary action taken if necessary.”
Abu Dhabi’s proactive results
Abu Dhabi has become undisputed leader Digital assets in the Middle East have been affected by a wave of positive legislation.Dubai is the economic hub of the country and has seen Binance, FTX and several digital asset exchange Doing business in the country after being licensed by the newly established Virtual Assets Regulatory Authority (VARA).
VARA is controlled by a broad legislature Digital Assets in Dubai, which prohibits companies from conducting virtual currency services without a VARA license. Companies seeking licenses are expected to “establish operations in Dubai,” and since the passage of the law, an influx of companies has flocked to the area seeking permanent licenses.
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