Abu Dhabi Global Market, the financial services regulator, has released guidance for regulatory framework for cryptocurrency activities.
Guidance issued under the Financial Services and Markets Regulations 2015 (“FSMR”), to be read in conjunction with the Rulebooks of the Financial Services Regulatory Authority (“FSRA”), the FSRA’s Guidance & Policies Manual and its ‘Guidance – Regulation of Initial Coin/Token Offerings (ICOs) and Crypto Assets under the FSMR (“ICO Guidance”).
This Guidance is applicable to:
- Applicants for permission to operate a Regulated Activity of Operating a Crypto Asset Business (“OCAB”) in or from the Abu Dhabi Global Market (“ADGM”);
- authorized persons operating an OCAB in or from ADGM; or
- a Recognised Investment Exchange with a stipulation on its Recognition Order with permission to operate a business within ADGM.
This Guidance is the approach to regulation of Crypto Asset activities (which includes exchanges, custodians and intermediaries) and is collectively referred to as the “Spot Crypto Asset Framework”.
The Guidance also sets forth the approach taken towards security tokens, utility tokens, non security tokens, crypto assets, derivatives and collective investment funds of the aforementioned as well, with an understanding that many of these new financial technologies are being created through the use of Distributed Ledger Technology (DLT) and Blockchain.