Abu Dhabi Updates its Virtual Asset Regulatory Frameworkby Company Announcement 3. March 2020
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) announced the enactment of various amendments to the FSRA’s regulations and rules concerning the authorisation and supervision of virtual asset (previously crypto asset) related activities within ADGM.
The amendments are part of ADGM’s ongoing commitment to regularly update and improve its regulatory framework based on global developments, in a manner which balances risk based regulations with the needs of market participants.
The key amendments include:
- Changing the terminology of “Crypto Asset” to “Virtual Asset”, to be aligned with the terminology used by the Financial Action Task Force, the inter-governmental body established to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and related threats to the integrity of the international financial system.
- Moving the applicable regulations and rules from a bespoke category of “Operating a Crypto Asset Business”, to the respective underlying Regulated Activities (e.g. Providing Custody, Operating a Multilateral Trading Facility, Dealing in Investments, etc.). This is to better reflect the nature of the underlying activities in relation to Virtual Assets.
The amended version of the FSRA regulations and rules are publicly available here:
Featured image: ADGM