The Abu Dhabi Securities Exchange has released a paper aimed at creating the infrastructure necessary to accommodate transactions with cryptocurrency-based assets and facilitate the implementation of distributed ledger technologies in the emirate. The platform wants to support financial institutions in their efforts to introduce services related to innovative investment instruments.
Also read: Professional Course Prepares Russian Lawyers for the Cryptocurrency Industry
ADX Shares Views on Cryptocurrency Regulation
The paper, in which the Abu Dhabi Securities Exchange (ADX) sets out its views on a regulatory framework for cryptocurrencies and digital assets, has been produced in cooperation with the emirate’s Central Securities Depository. The organization has been tasked with examining the phenomenon and participate in the creation of a safe and efficient environment for both the issuers of these assets and potential investors. The document has been prepared under the auspices of the International Securities Service Association.
According to a report by WAM, the state-run news agency of the United Arab Emirates, the exchange has been working to identify the “technical and operational criteria required to issue cryptoassets,” as the new asset class is seeing rapid development in the region. ADX also wants to provide a reliable reference for financial institutions trying to manage the transition from traditional assets to cryptocurrency-related instruments.
Abu Dhabi to Upgrade Market Infrastructure
Commenting on the release, the chief executive of ADX, Rashed Al Blooshi, noted the importance of upgrading Abu Dhabi’s existing financial market infrastructure. He also highlighted the need to incorporate comprehensive standards of governance within traditional systems in order to improve the quality of the infrastructure, prevent market fragmentation and increase investor confidence.
“Financial market infrastructure plays a pivotal role in supporting crypto markets, offering investor protection, preventing market fragmentation, as well as making it possible for financial institutions to provide advanced services in the field of cryptoassets,” Al Blooshi pointed out. He added that ADX is embracing innovative technologies and is constantly looking to capitalize on fintech advancements, particularly those regarding cryptoassets. The exchange is trying to optimize the benefits offered to its investors and stakeholders, the executive said.
In recent years, the region of the Arab Peninsula has been opening up to cryptocurrencies and related products and technologies. In January, the Abu Dhabi Global Market, an international financial center located in the heart of UAE’s capital, announced the adoption of a regulatory framework for cryptocurrency activities such as those performed by trading and custodial platforms.
This past September, the UAE Securities and Commodities Authority approved a plan to adopt regulations for initial coin offerings (ICOs). The watchdog recognizes the issued tokens as securities. The launch of the first cryptocurrency exchange registered in the United Arab Emirates has been announced this week.
What do you think of ADX’s regulatory initiative? Share your thoughts on the subject in the comments section below.
Images courtesy of Shutterstock.
At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.
The post Abu Dhabi Securities Exchange to Create Infrastructure for Cryptocurrency Assets appeared first on Bitcoin News.
Bitcoin.com is author of this content, TheBitcoinNews.com is is not responsible for the content of external sites.
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
