The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has made immediate amendments to its regulatory framework for digital assets. This follows extensive industry feedback on Consultation Paper No. 11 of 2024.
The changes affect the process for accepting Virtual Assets as Accepted Virtual Assets in ADGM. They also outline capital requirements and fees for authorised firms handling these assets.
A new product intervention power specific to Virtual Assets has been introduced. The rules now clearly prohibit the use of privacy tokens and algorithmic stablecoins within ADGM. The scope of permissible investments for Venture Capital Funds has also been broadened.
The FSRA has updated its guidance on regulating Virtual Asset Activities in ADGM to align with these changes. This aims to assist firms in understanding the criteria for assessing Accepted Virtual Assets.
“Through extensive consultation with industry stakeholders, we have further enhanced our framework to provide the regulatory certainty that industry participants need, while addressing the evolving risks of the digital asset ecosystem,” said Emmanuel Givanakis, CEO of ADGM’s FSRA. “We believe this further positions ADGM as a premier jurisdiction for digital asset-related activities and shows our commitment to fostering responsible innovation in financial services.”
