Abu Dhabi introduced guidelines for cryptocurrencies and initial coin offerings (ICOs) to regulate the cryptocurrency eco-system in the state. Now the Financial Services Regulatory Authority (FSRA) shares their framework with its regulatory counterparts around the world. The National, quoted Richard Teng, the FSRA chief executive :
“This space needs to be properly regulated, otherwise there is the risk of financial crime. Every time a coin gets stolen or lost, it affects the confidence in this asset class.”
Teng notes that over the past few months “a lot has changed” in the cryptocurrency sectors that lead them to shed their fear to explore the growing industry while understanding that guidelines are required to responsibly develop and encourage the sector. He added:
“We are confident that our comprehensive regime – which we have shared with global regulators like the [U.S.] SEC, the UK Treasury, Financial Conduct Authority and Bank of England, and regulators in Singapore, Hong Kong and Japan – can address these risks and bring greater confidence into this asset class.”
In October 2017, Abu Dhabi was one of the first financial centers and trade zones to outline guidance for cryptocurrency firms. The regulatory framework by the FSRA for cryptocurrency firms operating was enforced in the Abu Dhabi Global Market (ADGM) zone in June. The regulations include stipulations for exchange operators and crypto custody firms (wallet providers) alike, deems cryptocurrencies as commodities akin to precious metals. Wai Lum Qwok, the director of FSRA capital markets said last year whilst the regulations were introduced:
“[W]e do a lot of challenges in regulating something which was designed not to be regulated.”
On on hand, ADGM, a member of the R3-led banking-centric blockchain consortium acknowledged the possibility of cryptocurrencies accepted as a method of payment. The Saudi Arabia’s central bank outlawing bitcoin trading in the neighboring country. The Abu Dhabi regulator “https://www.ccn.com/bitcoin-regulation-abu-dhabi-financial-regulator-considers-cryptocurrency-framework/”>said earlier this year:
“The FSRA notes that virtual currencies, although not legal tender, are gaining interest globally as a medium of exchange for goods and services.”
Read more: Saudi Arabian Regulators Warns that Bitcoin Trading Is Illegal in The Country
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