Dubai: Abu Dhabi Global Market (ADGM), the city’s financial centre, launched on Monday a framework to regulate cryptocurrencies and address risks including money laundering and financial crime.
The framework will regulate crypto asset activities, including those undertaken by exchanges and other intermediaries in ADGM. It will also address risks relating to consumer protection, technology governance, and exchange operations.
ADGM said the launch is part of efforts to boost economic diversification in Abu Dhabi, with Ahmad Al Sayegh, chairman of ADGM, calling cryptocurrencies “the way of the future” in February this year.
Richard Teng, chief executive officer of the Financial Services Regulatory Authority of ADGM, said in a statement that there has been “significant global and regional interest” from exchanges and other institutions to the regulatory framework.
“Globally, responsible crypto asset players are seeking a regulatory regime upholding high standards that foster market confidence,” Teng said. “Our engagement with fellow global regulators also validated our position that the key risks highlighted have to be addressed for crypto assets to be more widely accepted and institutionalized.”
Cryptocurrencies, such as Bitcoin, have long received pushback from central banks and institutional investors about a lack of regulations governing them, with many saying that such a lack opens doors for potential fraud and financial crime.
