The Financial Services Authority (FSRA) of ADGM has announced the implementation of amendments to its regulatory framework for digital assets. This implementation follows extensive engagement with the industry and feedback received on Consultation Paper No. 11 of 2024.
The primary focus of the implemented amendments is on revising the process through which Virtual Assets (VAs) are accepted as Accepted Virtual Assets (AVAs) in ADGM, along with establishing appropriate capital requirements and fees for Authorised Persons conducting Regulated Activities related to VAs (VA Firms). Additionally, the amendments introduce a specific product intervention power concerning VAs, while also reinforcing existing rules that prohibit the use of privacy tokens and algorithmic stablecoins within ADGM. Furthermore, the amendments broaden the scope of investments for which Venture Capital Funds may invest.
The FSRA has updated the Guidance – Regulation of Virtual Asset Activities in ADGM to reflect these measures and provide further assistance to VA Firms regarding the application of the AVA assessment criteria.
Read more: ADGM FSRA publishes IT Risk Management Guidance
Regulatory certainty for industry
Emmanuel Givanakis, chief executive officer of ADGM’s FSRA, stated: “The implementation of these changes marks a significant milestone in the evolution of the FSRA’s framework for digital asset regulation. Through extensive consultation with industry stakeholders, we have further enhanced our framework to provide the regulatory certainty that industry participants need, while addressing the evolving risks of the digital asset ecosystem. We believe this further positions ADGM as a premier jurisdiction for digital asset-related activities and shows our commitment to fostering responsible innovation in financial services.”
