Abu Dhabi Global Markets Seeks Feedback for Its Proposed DLT Legislative Framework

According to reports, the Abu Dhabi Global Markets (ADGM) Registry is seeking feedback on its proposed Distributed Ledger Technology (DLT) legislative framework, with the goal of disclosure, liquidation, and governance structures. ADGM is an international financial center within the United Arab Emirates (UAE) and has developed a customized licensing system for virtual asset service providers regulated by its financial regulatory authorities.

Abu Dhabi Global Market Registry is seeking feedback on its proposed legislative framework for distributed ledger technology

The Abu Dhabi Global Markets (ADGM), an international financial center within the United Arab Emirates (UAE), is seeking feedback on its proposed Distributed Ledger Technology (DLT) legislative framework. This proposed framework aims to establish disclosure, liquidation, and governance structures for virtual asset service providers under the regulation of the ADGM financial regulatory authorities.

Understanding the Abu Dhabi Global Markets (ADGM)

The Abu Dhabi Global Markets (ADGM) is a financial center that was established to promote growth in the economy of Abu Dhabi and the UAE as a whole. ADGM offers a business-friendly regulatory environment that allows investors and businesses to operate with ease, promoting innovation and catalyzing growth.

Overview of the Proposed DLT Legislative Framework

The ADGM’s proposed DLT legislative framework seeks to regulate virtual asset service providers (VASPs) that operate within its jurisdiction. The framework outlines various key areas, including governance, disclosure, and liquidation.

Governance

The framework’s governance aspect aims to establish a regulatory framework that ensures proper governance and oversight of VASPs. This is to ensure that VASPs operate ethically and in compliance with the regulations set out by the ADGM.

Disclosure

The disclosure aspect seeks to establish transparency, which is critical for VASPs to operate effectively in the ADGM jurisdiction. As such, the framework aims to ensure that VASPs disclose relevant information related to their services and operations to the ADGM.

Liquidation

The liquidation aspect of the framework aims to establish a mechanism for VASPs to manage insolvency, something that is often neglected in regulation in the blockchain initiative. The framework outlines a comprehensive liquidation process, ensuring that VASPs can efficiently manage their insolvency.

The Importance of the Proposed ADGM’s DLT Legislative Framework

The proposed ADGM’s DLT legislative framework is important because it provides much-needed regulation for VASPs. This is an essential step forward in the development of the blockchain industry, as it promotes transparency, increases trust, and boosts credibility.
The framework also highlights the ADGM’s commitment to promoting innovation in the blockchain industry while ensuring that VASPs operate ethically and comply with regulations. This is expected to promote the growth of blockchain technology and establish the ADGM as a reputable financial center for the emerging blockchain industry.

Conclusion

The proposed ADGM’s DLT legislative framework is a significant step in the development of the blockchain industry in Abu Dhabi and the UAE. It provides the much-needed regulation for VASPs and establishes a regulatory framework that promotes transparency, trust, and credibility.
The ADGM’s commitment to promoting innovation in the blockchain industry while ensuring that VASPs operate ethically is highly commendable. It is expected to attract more blockchain-related businesses to Abu Dhabi and the UAE, promoting growth and innovation in the sector.

FAQs:

What is ADGM?

The Abu Dhabi Global Markets (ADGM) is an international financial center within the United Arab Emirates (UAE), offering a business-friendly regulatory environment.

What is the regulatory framework for VASPs?

The ADGM’s proposed DLT legislative framework seeks to establish a regulatory framework for virtual asset service providers (VASPs) operating within its jurisdiction.

How does the proposed DLT legislative framework promote transparency?

The proposed DLT legislative framework promotes transparency by ensuring that VASPs disclose relevant information related to their services and operations to the ADGM.