Abu Dhabi Releases New Guidelines to ‘Welcome and Support’ Digital Securities

Abu Dhabi Releases New Guidelines to ‘Welcome and Support’ Digital Securities

On September 5th 2019, Abu Dhabi published new guidelines concerning digital securities. The new publication welcomes and supports the use of digital securities by the FSRA.

Abu Dhabi’s New Digital Securities Regulations

Abu Dhabi continues to create a regulatory-friendly environment for digital assets.

Most recently, the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has issued new guidelines for digital securities.

The new framework, titled ‘Guidelines – Regulation of Digital Securities Activity in ADGM’, clarify and compliment the previously published guidance on initial coin offerings and other digital assets from late 2017.

The latest publication is said to provide a “road map for entities to efficiently and smoothly migrate into conducting digital securities activities”.

According to Ahmed Al Sayegh, UAE Minister of State and Executive Chairman of ADGM,

“It is important that we continue to stay ahead of the curve, as a progressive nation and economy, by responding to the dynamic needs of our local environment and anticipating the developments and impact of the global marketplace. As an international finance centre, ADGM has been actively playing a strategic role in creating new financial opportunities and initiating unique business propositions that benefit our local businesses and global partners.”

Richard Teng, CEO, FSRA of ADGM, said,

 “The FSRA’s Guidance on Digital Securities provides technologically advanced industry players with the transparency and certainty required to effectively operate in a best-in-class regulatory environment.  The publication of this Guidance reinforces the FSRA’s position as a regulatory thought leader in the Digital Asset market. It is also intended to further strengthen ADGM’s position as a smart digital IFC and Abu Dhabi’s position as a financial centre of innovation.  We welcome the continued engagement and support of the firms establishing, or seeking to widen, their operations within ADGM, and those that wish to add Digital Assets to the collection of Abu Dhabi’s diversifying and deepening capital market.”  

Digital securities— despite an ongoing debate— are also referred to as security tokens. Throughout multiple jurisdictions across the globe, including the United States and Hong Kong, security tokens must abide by existing securities regulations.

What do you think about Abu Dhabi publishing new guidance on digital securities? Let us know what you think in the comments section below.

Image courtesy of The National.