Abu Dhabi Global Market issues guidance on digital securities

In an effort to support the development of crypto assets within the financial centre, the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) issued new guidelines for digital securities.

According to the statement released by the authorities, the guidelines provide clarity on initial offerings, listing, trading of tokens, and custody of other securities. Moreover, it outlines a road map for the market participants to migrate into conducting digital securities activities within the financial centre in an efficient and smooth manner.

The Financial Services Regulatory Authority (FSRA) has said that the rules published complement the guidance issued on the Crypto Assets Regulatory Framework in June last year, and the guidance on initial coin/token offerings and crypto assets published two years ago in October.

According to Ahmed Al Sayegh, the UAE Minister of State and Executive Chairman of the Abu Dhabi Global Market, it is very important to stay ahead of other countries as a nation with a progressive economy. This can be done by anticipating the impacts and developments of the global marketplace and rapidly adapting to the changing landscape of the needs of the local environment. He also highlighted the strategic role of the Abu Dhabi Global Market as an international financial centre, which has been playing its part in creating innovative business propositions and financial opportunities, benefiting the local businesses along with global partners. Moreover, he said that the guidelines published strengthen the FSRA’s position as the regulatory leader in the Digital Asset market and Abu Dhabi’s position as the financial centre of innovation.

Richard Teng, Chief Executive of the Financial Services Regulatory Authority (FSRA), said the given guidelines on matters of digital securities, aim to provide the industry players excelling at technological advancements, with the transparency and certainty they require to conduct digital asset activities in the best regulatory environment out there. He also welcomed the continued support and participation of firms looking to establish or grow their functioning within the Abu Dhabi Global Market, and also those wanting to add digital assets to the diversifying and rapidly growing capital market of Abu Dhabi.

The Abu Dhabi Global Market is making itself an attractive destination for financial technology companies and trying to promote innovation by providing an appropriate regulatory environment, required for them to operate effectively and flourish. This year, various operators of crypto asset exchanges have been granted in-principle approval by the ADGM, including Matrix Exchange, Dex Exchange, and BitOasis.