This is the second edition of the initial guidance published in June 2018.
Tuesday 14, May 2019 BY KUDAKWASHE MUZORIWA
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Markets (ADGM) has enhanced its ‘Guidance for the Regulation of Crypto Asset Activities’.
Richard Teng, the Chief Executive Officer, FSRA of ADGM, said, “The enhanced guidance is a response to the rapidly changing technologies and crypto asset activities that we see operating globally.”
The regulator said that the updated guidance reinforces FSRA’s focus and commitment as a financial services regulator to support innovation and maintain rigorous regulatory practise.
The updated guidance states that Stablecoins that are fully backed by fiat currencies will be treated as a form of digital representation of money.
Additionally, FSRA further clarified on the types of crypto asset custody activities that can be undertaken, setting out the expectations in terms of custody governance and operations.
The FSRA is preparing further guidance on digital securities for primary and secondary market consideration.
The regulator’s updated guidance also introduces further enhancements and clarifications, in relation to changes in the underlying protocol of a crypto-asset that results in a coding change and the associated governance as well as control expectations for crypto-asset exchanges and licence holders.
The guidance has also been updated with the latest local and global anti-money laundering (AML), sanctions rules as well as guidance changes and it provides further clarity on the use of new regulatory and surveillance technologies in this space.