ADGM Publishes Detailed Guidance on Digital Securities

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has published its ‘Guidance for Digital Securities activities in ADGM’ to support development of digital assets under a comprehensive and progressive regulatory framework. As part of its holistic approach to the regulation of digital assets, the new Digital Securities Guidance provides clarity and transparency to market participants seeking to conduct digital asset activities within ADGM. This publication complements ADGM’s ‘Guidance on Initial Coin/Token Offerings and Crypto Assets’ that was launched in October 2017, and the implementation of ADGM’s Crypto Asset Regulatory framework in June 2018. H.E Ahmed Ali Al Sayegh, Minister of State (UAE) and Executive Chairman of ADGM, stated, “It is important that we continue to stay ahead of the curve, as a progressive nation and economy, by responding to the dynamic needs of our local environment and anticipating the developments and impact of the global marketplace. As an International Finance Centre, ADGM has been actively playing a strategic role in creating new financial opportunities and initiating unique business propositions that benefit our local businesses and global partners. ADGM’s comprehensive digital asset platform is evident of its innovative and progressive practice on regulations, legislative framework and business engagement.”

Mr Richard Teng, Chief Executive Officer, FSRA of ADGM, added, “The FSRA’s Guidance on Digital Securities provides technologically advanced industry players with the transparency and certainty required to effectively operate in a best-in-class regulatory environment. The publication of this Guidance reinforces the FSRA’s position as a regulatory thought leader in the Digital Asset market. It is also intended to further strengthen ADGM’s position as a smart digital IFC and Abu Dhabi’s position as a financial centre of innovation. We welcome the continued engagement and support of the firms establishing, or seeking to widen, their operations within ADGM, and those that wish to add Digital Assets to the collection of Abu Dhabi’s diversifying and deepening capital market.”

 The new digital securities Guidance provides clarity on the application of ADGM’s Securities regime, through the prism of technological advances and developments, with particular focus on Offers, Listings and trading, settlement and custody of Digital Securities. The Guidance applies to a number of financial services activities within ADGM, including in relation to exchanges and other trading venues, clearing houses, custodians, brokers and other intermediaries, as well as for the issuing, listing and trading of Digital Securities. Importantly, the Guidance also provides a roadmap for entities to efficiently and smoothly migrate into conducting Digital Securities activities within the ADGM, whether they have been operating within either the conventional or Crypto Asset space.