ADGM Financial Regulator Releases Guiding Principles on Its Approach to Regulation and Supervision of Virtual Assets

  • Recognizing the transformative power of the virtual asset (VA) industry and its potential to facilitate access to innovative financial services, ADGM’s FSRA outlines its expectations and risk appetite for regulating providers of virtual asset services.
  • Based on his comprehensive regulatory framework for virtual assets, the principles can support the FSRA’s collaboration with other regulators and inform the general public about how it responds to underlying risks in the industry.

Abu DhabiWATER, September 12, 2022 /PRNewswire/ — Abu Dhabi Global Market (ADGM), the international financial center in the capital of the United Arab Emirates, today announced that its financial regulator, the Financial Services Regulatory Authority (FSRA), has issued guiding principles on its approach to virtual asset regulation and supervision as a means of defining its expectations of the asset class and industry service providers.

The Principles act as an accessible and easy-to-follow supplement to ADGM’s comprehensive regulatory framework for point-in-time virtual asset activities. They also aim to facilitate greater regulatory collaboration and cohesion between the FSRA and other authorities, both in the UAE and globally. In addition, the Guiding Principles can also inform and educate the investment community and the general public about the regulatory actions that FSRA can take to identify and respond to underlying risks.

Specifically, the principles set out the FSRA’s risk appetite and priorities for the sector, with each principle covering one of the key pillars of ADGM’s holistic approach, namely: a robust and transparent regulatory framework ; high licensing standards; prevent money laundering and other financial crimes; risk sensitive monitoring; enforcement powers in the event of regulatory breaches; and its commitment to international cooperation. They will therefore be particularly relevant to potential candidates for the ADGM and other regulators with an interest in this area.

The Principles reflect the experience and expertise that ADGM’s ARSF has accumulated since introducing the world’s first bespoke regulatory regime for virtual assets in 2018. Taken together, the Principles are calibrated to ensure the protection customers, risk sensitivity and market integrity. , financial stability and confidence in the ecosystem. All of these make ADGM’s vibrant virtual asset community a destination of choice for top virtual asset companies and investors.

In light of recent market developments and diverse perspectives on the future of the industry, ADGM is committed to engaging with the industry to support its continued transformation and innovation. The focus remains on maintaining a dynamic yet robust regulatory framework and approach that can respond to changes in the risk profile of the industry. Recognizing the cross-border nature of the asset class, the FSRA believes that continued cooperation between regulators is imperative to prevent harmful regulatory arbitrage.

Emmanuel Givanakis, CEO of the FSRA said: “These guiding principles will provide greater clarity to investors, other regulators, industry and the general public about our approach to regulation in this area and the key expectations we have set for service providers. of current virtual assets in ADGM and potential candidates. They also describe the tools we have to mitigate the material risks that arise from these activities and the regulatory powers to identify and act on misconduct. In accordance with the strategy FSRA’s broader framework aimed at aligning with international best practice, these principles clarify the high standards of our framework at a time of heightened volatility and regulatory attention.”

To view the detailed ADGM FSRA Guiding Principles document, please CLICK HERE

For media inquiries, please contact:

Simon Hailes
Boss of Edelman SmithfieldMiddle East
M: +971 50 973 1173
E : [email protected]

Hajer Altenaiji
Corporate Communications Manager, ADGM
E : [email protected]

SOURCE Abu Dhabi Global Market (ADGM)


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