Abu Dhabi regulator brings crypto under control
Abu Dhabi Global Market (ADGM) has launched its framework to regulate spot crypto asset activities, including those undertaken by exchanges, custodians and other intermediaries.
This development follows the completion of a public consultation on the introduction of a framework by ADGM Financial Services Regulatory Authority (FSRA) on 28 May 2018.
The framework is designed to address the risks associated with crypto activities, including money laundering and financial crime, consumer protection, technology governance, custody and exchange operations.
Richard Teng, chief executive officer, FSRA of ADGM, says: “Globally, responsible crypto asset players are seeking a regulatory regime upholding high standards that foster market confidence.”
ADGM says taking into account “constructive comments” from respondents, several refinements have been made to the regulatory framework, with a “key change” being the implementation of the daily value trading levy imposed on crypto asset exchanges on a sliding scale basis.
You can read the ADGM’s guidance and policy statements here.
The issue of getting cryptocurrency exchanges under control is certainly a global occurrence.
Last week, Israel’s parliament decision to postpone the law regulating cryptocurrency exchanges by four months ignited a lively debate in the country.
Last month, Italian law firm BonelliErede brought the activities of cryptocurrency exchange platform BitGrail to a full stop.
In an opinion piece, Claude Brown, partner at Reed Smith, looked at “how to solve a problem like cryptocurrencies”.