The Abu Dhabi Global Market (ADGM) Registration Authority (RA) has officially issued the Distributed Ledger Technology (DLT) Foundations Regulations 2023. This release represents a significant milestone in the development of regulatory frameworks for digital assets, both regionally and internationally.
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The recently introduced legislative structure is specifically crafted to offer a comprehensive framework for DLT Foundations and Decentralised Autonomous Organisations (DAOs), facilitating their operations and token issuance while acknowledging the distinct requirements of the Blockchain industry. This new regime aligns with ADGM’s strategic approach to supporting initiatives within the broader blockchain and digital asset domain.
Global standard
This regulatory framework sets a global standard as the first of its kind, tailored to cater to Blockchain Foundations, Web3 entities, DAOs, and traditional Foundations aiming to enhance their operations through DLT. It stands ready to transform the industry by offering a comprehensive solution for digital asset-related activities and the broader Foundations landscape, paving the way towards a future characterized by enhanced transparency and efficiency.
Leveraging technology
ADGM’s DLT Foundations Regime leverages technology’s potential to provide an efficient framework for organizing and promoting governance, all while acknowledging the industry’s demand for decentralization. The enactment of this regime came after a public consultation process involving participants from the DLT industry, allowing for user feedback and the enhancement of regulations. Consequently, this framework is poised to fortify ADGM’s position as a global trailblazer in digital asset regulations.
Proactive approach
Ahmed Jasim Al Zaabi, chairman of ADGM, commented on the launch and implementation of the framework, stating, “Abu Dhabi is rapidly emerging as the destination of choice for global players at the forefront of digital asset development. The introduction of the DLT Foundations Regime marks a revolutionary step forward, reinforcing ADGM’s commitment to a proactive approach rooted in extensive cross-industry dialogue and collaboration with various stakeholders. The new regime serves as a driving force for positive change in the digital assets sector. By transforming the blockchain and Web3 landscape, we are moving towards a future characterised by setting global benchmarks with enhanced transparency and efficiency.”
In recent years, Digital Ledger Technology (DLT) has experienced rapid advancement, becoming a cornerstone of the global digital assets sector. ADGM, as a prominent International Financial Centre (IFC), continues to demonstrate its commitment to championing technological innovation and providing support for crypto initiatives.
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