“Guiding Principles” for the regulation of virtual assets are revealed by the financial regulator for Abu Dhabi’s global market #Guiding #Principles #regulation #virtual #assets #revealed #financial #regulator #Abu #Dhabis #global #market Welcome to Americanah Blog, here is the new story we have for you today:
The Financial Services Regulatory Authority (FSRA), the financial watchdog of Abu Dhabi Global Market, recently released six guiding principles for its “approach to virtual asset regulation and supervision.” The FSRA states that the principles should be “viewed as a complement to the extensive depth of our published framework,” even if they are not legally obligatory.
The FSRA states that the principles should be “viewed as a complement to the extensive depth of our published framework,” even if they are not legally obligatory. The regulator claims that the six principles might serve as the foundation “for regulatory consistency among jurisdictions.”
United Arab Emirates (UAE)-based financial hub and international free zone Abu Dhabi Global Market (ADGM) recently published six guiding principles for virtual asset regulation and supervision. The Financial Services Regulatory Authority (FSRA), which oversees the UAE’s financial sector, published the principles. They are meant “to support collaboration with other like-minded regulatory authorities in and outside the UAE.”
The principles are a reflection of the regulator’s risk appetite in the regulatory domains in addition to “offering an accessible view” of the FSRA’s goals in this area.
The construction of “a robust and transparent risk-based regulatory framework” is required by the FSRA’s first principle, as can be seen in the document detailing the fundamental characteristics of each method to regulating virtual assets. On the one hand, such a framework “should introduce a clear taxonomy defining VAs (virtual assets) as commodities within the broader digital asset universe and necessitates the licencing of businesses engaging in regulated activities that employ VAs inside ADGM.”
“Each principle is a statement of the risk appetite of the FSRA in the areas of regulation, authorisation, financial crime, supervision, enforcement, and international collaboration. These expectations, when taken as a whole, are calibrated to guarantee the proper harmony between trust in our ecosystem, risk sensitivity, client protection, and luring new competitors, the regulator said.
Licensed virtual asset entities, on the other hand, should have the “same regulatory standing inside ADGM as any other licenced entity” under the same framework.
The second tenet demands that while providing authority, strict standards be upheld. The FSRA claims that another important consideration that should direct virtual asset regulation is the prevention of financial crime and money laundering. Another concept that should direct the regulators is a commitment to using enforcement mechanisms when licenced firms violate regulations.
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