Abu Dhabi’s Crypto Guiding Principles: A New Set Of Guidelines For Cryptocurrencies Has Been Introduced
Even in 2022, investing in cryptocurrency for the long run seems plausible. As this historic year comes to a close, many factors have emerged as key driving forces, including soaring market values, the emergence of credible and legitimate participants in the crypto space, and, most importantly, the tangible benefits of blockchain technology. Cryptocurrency can be seen everywhere now, from corporate financial sheets to online auctions of digital artwork.
Abu Dhabi has adopted updated regulations for cryptocurrencies, joining the ranks of other nations and states striving to accept and regulate the crypto sector. The revised guidance reaffirms the FSRA’s commitment to supporting innovation and upholding strict regulatory standards in its role as a financial services regulator. The latest updates are included in several areas to reflect current world affairs. Even though they embrace a pro-market attitude, the FSRA still claims to implement international safety regulations.
Crypto Guiding Principles: The Five Key Fundamental Assumptions
The principles have a tone that is welcoming to the cryptocurrency business, and they make a commitment to comply with international norms for anti-money laundering (AML), countering the financing of terrorism (CFT), and supporting financial sanctions. The ADGM’s official website now has five guiding principles, without mentioning when they will be released. The principles are described as follows:
- Internationally Recognised Regulatory Framework
- Dynamic and Market-Oriented Regulations
- Risk-focused and Proportionate Approach
- Cooperation and Shared Responsibility
- Delivering High Standards of Quality & Service
Even though the concepts are generally aligned with the goals of making markets more competitive, innovative, and secure, some features would be typical of the ADGM regulatory environment.
Essentials Of Crypto Asset Activity Regulation
ADGM will adopt leading techniques and standards from other global financial hubs to create a world-class regulatory environment. It would give businesses and financial institutions operating in ADGM the assurance that the regulatory requirements and framework are equivalent to those in their home countries. To assist organizations in minimizing and managing any possible increased compliance costs resulting from newly enacted rules, ADGM will employ existing and generally recognized legal principles. Furthermore, it will facilitate the prompt revision of ADGM’s rules.
The Outcomes Of Abu Dhabi’s Proactive Measures
Encouraged by a spate of progressive laws, Abu Dhabi has quickly become the Middle East’s unrivaled leader in digital assets. The FSRA has several priorities, but the top of the list is to develop a framework that aligns with the most effective standards for the worldwide provision of financial services. As a result, companies providing digital asset services should be prepared to adhere to financial accounting standards and accept penalties imposed by defaulting jurisdictions. The rules and regulations that ADGM will implement are principle-based. They will be reinforced by precise rules wherever it is necessary to direct the behavior of market players and industry participants.