AD financial hub proposes regulations for cryptocurrencies

AD financial hub proposes regulations for cryptocurrencies
The regulator for ADGM has proposed regulation for cryptocurrencies.
Published: 30 April 2018 - 11:58 a.m.
By: Mark Sutton

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) on Monday published a consultation paper setting out its proposed framework to regulate spot crypto asset activities, including exchanges, custodians and other intermediaries.

The FSRA said it is proposing a fit-for-purpose regulatory framework that effectively addresses the full range of risks associated with crypto asset activities.

For crypto asset exchanges, it will entail proper regulation as market infrastructures addressing key risks including anti-money-laundering and counter-terrorist financing, consumer protection, technology governance and safe custody.

Richard Teng, CEO, FSRA of ADGM, said: "The FSRA is seeking to instil proper governance, oversight and transparency over crypto asset activities.

"In our outreach and engagement, many established and responsible participants engaged in crypto asset activities are seeking to be properly regulated by observing high standards on customer protection, custody and technology governance.

"By providing a best-in-class regime, this addresses concerns of regulators and investors alike, particularly institutional investors seeking to gain exposure to this asset class. Our proposed regulatory regime is only possible with our deep understanding and knowledge of the solutions available to address the respective risks and represents the most comprehensive regime proposed by global regulators so far."

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