Abu Dhabi’s crypto and blockchain businesses are expected to grow rapidly and attract international investors, especially from the United States.
The Registration Authority of the Abu Dhabi Global Market (ADGM) has released a consultation paper seeking feedback on its proposed new framework for the distributed ledger technology (DLT) market and token issuance. The regulatory authority has set Friday, May 12 as the deadline to provide feedback on the proposed legal framework. Thereafter, the regulatory agency will review the feedback and later the ADGM Board of Directors will finalize the legal proposal.
The initiative comes amid the rise of the decentralized economy in Abu Dhabi and internationally. With jurisdiction over the regulatory framework in the international finance hub within the United Arab Emirates (UAE), the authority is keen to attract investors to the decentralized market.
“ADGM has received interest regarding the use of ADGM foundations for DLT purposes and the issuance of non-regulated utility tokens. However, while foundations are inherently well suited for DLT projects, our current foundation governance Certain features and requirements within impose constraints that are not desirable for DLT projects,” the proposal noted,
Dubai as a Blockchain and Crypto Hub
UAE is working towards becoming a favorable investment destination for blockchain related companies. Earlier this year, Dubai planned to allow crypto companies to obtain relevant operating licenses. Under the new licensing mandate, all interested crypto businesses in Dubai are expected to seek approval from the Virtual Assets Regulatory Authority (VARA).
“With bespoke rules and guidelines designed to provide clarity, ensure certainty and mitigate market risks, VARA seeks to develop a model framework for global economic stability within an innovation-focused environment that is truly borderless.” , is technology agnostic and future-oriented.” Noted by the regulator.
The Virtual Assets Regulatory Authority issued several orders on crypto asset advertising. In this regard, the country was keen to protect investors from exploitative businesses while at the same time providing an environment conducive to technological innovation. Furthermore, blockchain technology has been developed to upgrade the traditional financial sector and meet the growing demand for fast, secure and reliable payments. In particular, the UAE is keen to attract crypto companies from the United States that are fleeing hostile takeovers. seconds, For example, Coinbase Global Inc (NASDAQ: COIN) has sought a Dubai crypto license in its latest quest to diversify into the global market.
Other notable crypto investors already in the Dubai market include binance And ripple labs, As a result, the local authority has been able to undertake employment generation and economic expansion projects.
big picture
The overall winner in Abu Dhabi’s blockchain adoption is bitcoin and the rest of the crypto market which is valued at around $1.2 trillion. With the European Union already pro-crypto, other global countries are expected to implement blockchain policies. As a result, next year’s halving event that unleashes a new crypto bull market will involve more mainstream markets.
Let’s talk crypto, metaverse, NFTs, Sedefi, and stocks, and focus on multi-chain as the future of blockchain technology. Let us all win!
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