Abu Dhabi Global Markets (ADGM), the international financial centre in Abu Dhabi, today unveiled its framework to regulate spot crypto asset activities, including the activities undertaken by exchanges, custodians, and other intermediaries in ADGM. The framework follows the successful completion of public consultation on the introduction of a robust crypto asset regulatory framework by Financial Services Regulatory Authority (FSRA) that ended on 28th May 2018.
The regulatory framework addresses the full range of risks associated with crypto asset activities, which includes risks relating to money laundering and financial crime, consumer protection, technology governance, custody and exchange operations. The overall public consultation round had been very positive with local and global respondents contributing to the proposed regulatory framework and factoring in constructive comments and several refinements have been made to the regulatory framework. The visible change being the implementation of the Daily Value Trading Levy imposed on the Crypto asset Exchanges on a sliding scale basis.
The launch of new regulatory framework shows the ADGM’s effort and commitment to pave a new way towards the economic diversification of Abu Dhabi through innovation and sustainable initiatives.
Mr Richard Teng, Chief Executive Officer, FSRA of ADGM, said:
“We are encouraged by the significant global and regional interest from exchanges, custodians, intermediaries and other institutions to our crypto spot regulatory framework. Globally, responsible crypto asset players are seeking a regulatory regime upholding high standards that foster market confidence. By introducing a comprehensive and best-in-class regulatory framework, the FSRA is taking a leading role in instilling proper governance, oversight and transparency over crypto asset activities, positioning ADGM as a destination of choice for crypto asset players. Our engagement with fellow global regulators also validated our position that the key risks highlighted have to be addressed for crypto assets to be more widely accepted and institutionalized.”
The FSRA also published its “Guidance- Regulation of Crypto Activities in ADGM” and application form for those entities who are interested to operate crypto related activities within ADGM. The proposed regulatory framework and guidance elaborates ADGM stance towards the crypto asset activities and can be a useful resource for interested applicants.
Karthik Subramanian
Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.
