- Recognising the transformative energy of the digital asset (VA) business and its potential to facilitate entry to modern monetary companies, ADGM’s FSRA outlines its expectations and danger urge for food for regulating digital asset service suppliers.
- Based on its complete digital asset regulatory framework, the ideas can help the FSRA’s collaboration with different regulators and inform the broader public of the way it responds to underlying dangers within the sector.
Abu Dhabi, UAE, Sept. 12, 2022 /PRNewswire/ — Abu Dhabi Global Market (ADGM), the International Financial Centre of the UAE’s capital metropolis, introduced at the moment that its monetary regulator, the Financial Services Regulatory Authority (FSRA), has revealed Guiding Principles on its strategy to digital asset regulation and supervision as a approach to define its expectations for the asset class and service suppliers within the sector.
The ideas act as an accessible and simple to observe complement to ADGM’s complete regulatory framework for spot digital asset actions. They additionally goal to facilitate higher regulatory collaboration and cohesion between the FSRA and different authorities each within the UAE and globally. Furthermore, the guiding ideas may inform and educate the investor group and most people in regards to the regulatory actions the FSRA can take to determine and reply to underlying dangers.
Specifically, the ideas state the FSRA’s danger urge for food and priorities for the sector, with every precept overlaying one of many key pillars of ADGM’s holistic strategy, specifically: a sturdy and clear regulatory framework; excessive requirements of authorisation; stopping cash laundering and different monetary crimes; risk-sensitive supervision; enforcement powers for regulatory breaches; and its dedication to worldwide cooperation. They will due to this fact be of specific relevance to potential candidates to ADGM and different regulators with an curiosity on this space.
The ideas stand as a mirrored image of the expertise and experience the ADGM’s FSRA has gathered for the reason that introduction of the world’s first bespoke regulatory regime for digital belongings in 2018. When considered collectively, the ideas are calibrated to guarantee buyer safety, danger sensitivity, market integrity, monetary stability, and confidence within the ecosystem. All of those set up ADGM’s vibrant digital asset group as a vacation spot of alternative for the best-in-class digital asset corporations and buyers.
In mild of latest market developments and the variety of views on the sector’s future, ADGM is dedicated to participating with the business to help its steady transformation and innovation. The focus stays on sustaining a dynamic but strong regulatory framework and strategy that may reply to adjustments within the sector’s danger profile. Recognising the cross-border nature of the asset class, the FSRA believes that ongoing cooperation between regulators is crucial to forestall dangerous regulatory arbitrage.
Emmanuel Givanakis, CEO of the FSRA mentioned, “These guiding principles will provide greater clarity to investors, other regulators, industry and the wider public of our approach to regulation in this area and key expectations we have set on current virtual asset service providers in ADGM and potential applicants. They also outline the tools we have at our disposal to mitigate the material risks that are born from these activities and the regulatory powers to identify and act upon any misconduct. Consistent with the FSRA’s broader strategy to align with international best practices, these principles make clear the high standards of our framework at a time of increased volatility and regulatory focus.”
To view the detailed doc on ADGM FSRA’s Guiding Principles, please CLICK HERE
For media queries please contact:
Simon Hailes
Head of Edelman Smithfield, Middle East
M: +971 50 973 1173
E: [email protected]
Hajer Altenaiji
Head of Corporate Communications, ADGM
E: [email protected]
