Abu Dhabi Global Market’s FSRA publishes guiding principles on virtual asset regulation and supervision

Abu Dhabi Global Market’s financial regulator, the Financial Services Regulatory Authority (FSRA), has published ‘Guiding Principles’ on its approach to virtual asset regulation and supervision to outline its expectations for the asset class and service providers in the sector.

The principles act as an accessible and easy-to-follow complement to ADGM’s comprehensive regulatory framework for spot 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.

The principles can also inform and educate the investor community and the general public about the regulatory actions the FSRA can take to identify and respond to underlying risks.

The principles state 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 standards of authorisation; preventing money laundering and other financial crimes; risk-sensitive supervision; enforcement powers for regulatory breaches; and its commitment to international cooperation. They will therefore be of particular relevance to potential applicants to ADGM and other regulators with an interest in this area.

Emmanuel Givanakis, CEO of the FSRA said, “These guiding principles will provide greater clarity to investors, other regulators, industry and the wider public of our approach to regulation in this area and key expectations we have set on current virtual asset service providers in ADGM and potential applicants. They also outline the tools we have at our disposal to mitigate the material risks that are born from these activities and the regulatory powers to identify and act upon any misconduct.

“Consistent with the FSRA’s broader strategy to align with international best practices, these principles make clear the high standards of our framework at a time of increased volatility and regulatory focus.”

In recent news, ASGM and the Abu Dhabi Residents Office (ADRO), a sector of the Department of Economic Development – Abu Dhabi, have signed a partnership agreement to support ADGM’s international members through digital visa services and other initiatives.

Read: Abu Dhabi’s ADGM, ADRO to enhance support to ADGM’s international community