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    Digital Assets

    Setting up in ADGM Digital Assets
    An innovative ecosystem supported by progressive regulations

    Digital assets enabled by distributed ledger technology present new opportunities to monetise and transfer assets, unlocking liquidity, economic growth, and financial inclusion. As a thought leader in driving the responsible development of financial innovation, ADGM is the first in the region to introduce a comprehensive regulatory framework for digital assets to foster new business models and investment choices, while providing for robust investor protection, transparent and efficient financial markets.

    ADGM’s regulatory framework caters to a diverse suite of business activities and product offerings in relation to Virtual Assets, Digital Securities, and Derivatives and Funds of digital assets. Financial services entities that wish to carry on such activities in ADGM must apply for a Financial Services Permission from the Financial Services Regulatory Authority (FSRA) under the applicable financial services regulations.

    Why set up your ADGM Digital Asset activities Application process Steps to setting up
    Why set up your Digital Assets business in ADGM
    ADGM supports the development and expansion of transformative digital asset businesses, offering an enabling tech ecosystem and innovative community including financial institutions, investors, accelerators, infrastructure players, developers and professional service providers.
    ADGM prides itself on being a risk-based and progressive regulator open to the use of technological innovation and welcomes engagement to support ideas for growing your business.
    With access and connectivity to a global network of financial services regulators and fintech hubs, ADGM provides a connecting platform for digital asset businesses to scale their products in multiple jurisdictions.
    Digital Asset activities
    regulated by ADGM

    Positioning itself as a destination of choice for virtual asset investors and in response to global demand from the industry, ADGM is the first jurisdiction in the region to introduce a comprehensive and bespoke regulatory framework for the regulation of spot virtual asset activities, including those undertaken by multilateral trading facilities, brokers, custodians, asset managers and other intermediaries.

    ADGM’s regulatory clarity and sophistication facilitate the operation of industry leading virtual asset players in a business-friendly environment. The regulatory framework addresses the full range of associated risks, including those relating to market abuse and financial crime, investor protection, technology governance, custody and exchange operations.

    The FSRA is the first regulator globally to regulate platforms that enable the trading of Virtual Assets as Multilateral Trading Facilities. Under the FSRA's regime, Multilateral Trading Facilities for Virtual Assets are required to meet requirements in relation to market surveillance, settlement, transaction monitoring and recording, transparency and other systems and controls. In order to foster institutional involvement within virtual asset markets, the FSRA focuses on proper governance, oversight and transparency in relation to actors within this space.

    Guidance – Regulation of Virtual Asset Activities in ADGM

    Any digital token that exhibits the characteristics of a Security will be deemed and regulated as a Security by the FSRA. Issuers and businesses, locally and globally, can take advantage of ADGM’s best in class framework to raise capital and manage their investments in an efficient manner via the issuance and trading of Digital Securities in and from ADGM.

    Guidance - Regulation of Digital Securities Activities in ADGM

    Derivatives over Digital Assets, and Collective Investment Funds investing in Digital Assets, are regulated as Derivatives and Units in a Fund by the FSRA. Market operators and intermediaries dealing in such Derivatives and Funds are required to be licensed by the FSRA.

    Other guidelines and frameworks for Digital Asset activities

    Guiding Principles to Virtual Asset Regulation and Supervision

    The Guiding Principles cover the FSRA's approach to virtual asset regulation and supervision, specifically outlining its expectations and risk appetite for the sector via the key pillars of: regulation; authorisation; preventing financial crimes; supervision; enforcement; and international cooperation.

    DLT Foundations Framework

    ADGM’s DLT Foundations Framework is the world’s first framework for Blockchain Foundations and Decentralised Autonomous Organisations (DAO). Serving as a powerful vehicle for positive change, the framework promotes transparency and provides governance, whilst minimising centralisation.
    Application process

    Financial Services entities looking to set up in ADGM are required to secure approval from the ADGM Financial Services Regulatory Authority before proceeding with registration.

    Applicants are required to fill out the requisite forms and provide all the necessary information required when making an application.

    With the information provided, the FSRA Authorisation Team will assess whether the applicants meet the admission requirements, including the following aspects:

    • Operational, financial and regulatory track record of the entity and shareholders
    • Fitness and propriety of senior management and key appointment holders
    • Resources, systems and controls of the entity to ensure proper corporate governance and compliance with all applicable rules and regulations

    A thoroughly and accurately completed application as specified in the forms, will expedite this process.

    To download all Application Forms click here.
    For information on applicable fees click here.

    Steps to setting up in
    ADGM

    1. Contact us

    Call or meet with one of our FSRA Authorisation Team for an initial discussion on your requirements. In preparation for the meeting, Applicant will need to have a regulatory plan, setting out the planned regulated activities, internal controls and resources to address the related risks.

    2. Submit form

    Submit the completed application form, and any documentation required, along with the application fee.

    3. Interviews

    Authorisation Team will review your application, follow up on any clarifications, conduct interviews with the Approved Person and fill in any information gaps.

    4. Notification

    Applicant will be notified if the application has been approved in principle, subject to conditions.

    5. Acceptance

    If Applicant accepts the in principle approval conditions, the Applicant must prepare to satisfy these conditions and proceed with capitalisation and hiring and contacting the ADGM Registration Authority to start the process of Commercial Licence application.

    6. Permission

    Once these conditions are met, ADGM will issue the Applicant's Financial Services Permission.

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