ADGM's FSRA Publishes Guidelines on Approach to Virtual Asset Regulation and Supervision

The principles stand as a reflection of the experience and expertise the ADGM's FSRA has gathered since the introduction of the world's first bespoke regulatory regime for virtual assets in 2018. When viewed together, the principles are calibrated to ensure customer protection, risk sensitivity, market integrity, financial stability, and confidence in the ecosystem. All of these establish ADGM's vibrant virtual asset community as a destination of choice for the best-in-class virtual asset companies and investors.

In light of recent market developments and the diversity of views on the sector's future, ADGM is committed to engaging with the industry to support its continuous transformation and innovation. The focus remains on maintaining a dynamic yet robust regulatory framework and approach that can respond to changes in the sector's risk profile. Recognising the cross-border nature of the asset class, the FSRA believes that ongoing 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 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."