emirates7 - The Financial Services Authority (FSRA) of Abu Dhabi Global Market (ADGM) has announced immediate implementation of updates to its regulatory framework for digital assets. These changes come after extensive consultation and feedback on Consultation Paper No. 11 of 2024.
The key updates focus on revising the process for approving Virtual Assets (VAs) as Accepted Virtual Assets (AVAs) within ADGM. They also include appropriate capital requirements and fees for Authorised Persons (VA Firms) engaged in regulated VA activities.
Additionally, the amendments introduce a new product intervention power related to VAs and formally reinforce the existing ban on the use of privacy tokens and algorithmic stablecoins in ADGM. The scope of investments permissible for Venture Capital Funds has also been broadened.
The FSRA has updated its Guidance on the Regulation of Virtual Asset Activities in ADGM to reflect these changes and to assist VA Firms with the AVA assessment criteria.
Emmanuel Givanakis, CEO of ADGM’s FSRA, stated that these amendments represent a major step forward in developing the digital asset regulatory framework. He emphasized that the extensive industry consultation has enhanced regulatory clarity, addressed emerging risks, and further established ADGM as a leading jurisdiction for digital asset activities, highlighting the FSRA’s commitment to promoting responsible innovation in financial services.
The FSRA also expressed appreciation for the constructive feedback received during the consultation process. The amended legislation can be accessed here.
The key updates focus on revising the process for approving Virtual Assets (VAs) as Accepted Virtual Assets (AVAs) within ADGM. They also include appropriate capital requirements and fees for Authorised Persons (VA Firms) engaged in regulated VA activities.
Additionally, the amendments introduce a new product intervention power related to VAs and formally reinforce the existing ban on the use of privacy tokens and algorithmic stablecoins in ADGM. The scope of investments permissible for Venture Capital Funds has also been broadened.
The FSRA has updated its Guidance on the Regulation of Virtual Asset Activities in ADGM to reflect these changes and to assist VA Firms with the AVA assessment criteria.
Emmanuel Givanakis, CEO of ADGM’s FSRA, stated that these amendments represent a major step forward in developing the digital asset regulatory framework. He emphasized that the extensive industry consultation has enhanced regulatory clarity, addressed emerging risks, and further established ADGM as a leading jurisdiction for digital asset activities, highlighting the FSRA’s commitment to promoting responsible innovation in financial services.
The FSRA also expressed appreciation for the constructive feedback received during the consultation process. The amended legislation can be accessed here.