The Monetary Companies Regulatory Authority (FSRA), the monetary regulator of Abu Dhabi World Market free financial zone (ADGM), revealed its “Guiding Rules” on its strategy to digital asset regulation and supervision.
Pleasant in tone to the crypto business, the rules pledge to adjust to worldwide requirements in Anti-Cash Laundering (AML), combating the financing of terrorism (CFT) and supporting monetary sanctions.
5 rules had been published with out date specification on the official webpage of the ADGM. They go beneath the titles of Internationally Recognised Regulatory Framework, Dynamic and Market-Oriented Laws, Threat-focused and Proportionate Method, Cooperation and Shared Duty, Delivering Excessive Requirements of High quality & Service.
Whereas generally the tone and content material of the rules correspond to straightforward declarations of creating the market extra dynamic, modern and protected, on the similar time, there are some particular factors that may outline the ADGM regulatory panorama.
In keeping with the rules, the ADGM’s legislative framework can be based mostly on English Frequent Legislation. Throughout the financial zone, the Regulator, Registrer and Courtroom capabilities will function solely independently, with a regulatory committee appointed by the board to make sure supervisory independence.
As liberal as they sound, these premises can be supplemented by compliance with worldwide AML/CFT requirements, shut cooperation with different jurisdictions and “monetary sector surveillance” as part of the FSRA operate.
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The regulator additionally intends to collaborate intently with market individuals on a “common however casual” foundation. This may embody one-on-one periods between regulatory and enterprise groups, in addition to the working teams of market individuals and professionals.
In March 2022, ADGM revealed a session paper proposing that licensed corporations can be allowed to facilitate nonfungible token (NFT) buying and selling within the jurisdiction. In April, Binance and Kraken grew to become the primary overseas corporations to obtain regulatory approvals to function in ADGM.
