Quick take:
- Registration Authority of Abu Dhabi Global Market has introduced a regulatory framework for web3 companies.
- The regime addresses the requirements of DAOs, DeFis and blockchain foundations under the broader crypto industry.
- The framework will allow DLT organisations to operate and issue tokens recognising the unique needs of the Blockchain industry.
Abu Dhabi has launched a framework for regulating decentralised autonomous organisations (DAOs), decentralised finance (DeFi) and Web3 companies.
The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) said the Distributed Ledger Technology (DLT) Foundations Regulations 2023 will allow organisations to operate and issue tokens recognising the unique needs of the Blockchain industry.
The new regime is part of the ADGM’s strategy to foster initiatives in the broader blockchain and digital assets industry, marking a significant milestone in the evolution of digital assets regulatory frameworks in the region and globally.
So far, the Southeast Asia region, spearheaded by Hong Kong has been at the forefront of laying out a definitive framework for regulating digital assets companies. The Securities and Futures Commission of Hong Kong has introduced rules for regulating virtual assets trading companies in the country.
Since launching the framework, multiple crypto organisations have expanded to Hong Kong, including digital assets venture firm Hivemind Capital, the latest to join a growing list that includes the world’s largest crypto exchange Binance.
Abu Dhabi’s framework is designed to be suitable for Blockchain Foundations, Web3 entities, DAOs, and traditional Foundations seeking to enhance their operations through DLT, the ADGM said in a statement on Thursday. It provides a unified solution addressing all the needs and requirements of digital assets-related activities and the broader crypto industry.
The regime will organise and promote governance without compromising on the industry’s need for decentralisation.
Commenting on the launch and the enactment of the framework, His Excellency Ahmed Jasim Al Zaabi, Chairman of ADGM, said: “Abu Dhabi is rapidly emerging as the destination of choice for global players at the forefront of digital asset development. The introduction of the DLT Foundations Regime marks a revolutionary step forward, reinforcing ADGM’s commitment to a proactive approach rooted in extensive cross-industry dialogue and collaboration with various stakeholders.”
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