Abu Dhabi regulator unveils 5 ‘guiding principles’ to control digital assets
The Financial Information Services Regulatory Authority (FSRA), an important financial regulator in the Abu Dhabi International Market Free Economic Development Zone (ADGM), has issued new principles to specifically guide its virtual asset control. The principles announced by FSRA use the theme of being friendly to this industry, suggesting that this field will promote independent innovation.
The fundamental task of FSRA is to create an architecture consistent with the best practices of global international financial information services. As a result, digital asset service providers can be fully prepared to comply with the world's recognized financial statement rules and comply with the prohibitions imposed on jurisdictions that make mistakes.
"The rules and regulations of ADGM will take principles as the carrier, and fill in practical and detailed rules under appropriate conditions to guide market behavior and industry participants in a specific way," wrote the guide
To achieve this goal, the Management Office indicated that the rules would be fair and equitable, and senior professionals would "deploy a series of solutions through appropriate correction of supervision."
Although this principle service commitment is dynamic and innovative, a requirement must comply with the "moderate risk specification". For financial enterprises with several physical objects in the system, adopt a comprehensive approach, and at the same time, the rights and interests of customers will exceed those of other participants.
The FSRA service promises to abide by the principles of collaboration and shared responsibility, while not unfamiliar with Dubai's local culture. The last part of the Specific Guiding Principles is to strictly implement the standardization quality and service projects, and confidently punish the enterprises that violate the standardization.
"In case of violation of its rules and regulations, the regulatory authority will immediately take effective measures to mitigate all immediate risks of infection in the sales market or adverse impact on customers," wrote the guide. "We will conduct systematic research and adopt organizational discipline if necessary."
Abu Dhabi actively concludes
Driven by a series of proactive laws, Abu Dhabi has become an unquestionable manager of the digital asset industry in Middle East countries. Dubai is the economic center of the host country. After obtaining the license granted by the newly established Virtual Assets Regulatory Authority (VARA), Binance, FTX and several digital asset trading centers have established business processes in the host country.
VARA was established through a comprehensive legislative body of the United Arab Emirates that manipulates digital assets. This body prohibits companies from conducting digital currency service projects with theout VARA license. Enterprises applying for licenses are expected to "create business processes in the United Arab Emirates". Since the adoption of the law, many enterprises have flocked to the place to seek permanent licenses.