Abu Dhabi Securities Exchange (ADX) Releases Crypto Asset Issuing Criteria For Financial Institutions
New Thought Paper From ADX To Clarify Criteria For Issuing Digital Assets and Other Crypto-Related Topics
Countries around the world are struggling to find the best regulatory measures to deal with cryptocurrency within their economies. While some countries have completely banned it, there are other countries working fervently to find fair and secure business practices that the public must follow with digital assets. Before regulatory measures can be established, it is important to clarify some of the vocabulary in the industry and how they apply to the exchanges. In a new thought piece from the Abu Dhabi Securities Exchange (ADX), they do just that.
The new thought paper primarily focuses on cryptocurrency and blockchain infrastructure, particularly how it pertains to the issuance of digital assets. According to a report from the WAM news agency for the Emirati government, this paper was also the result of a collaboration involving ADX and the Central Securities Depositories. The goal that the ADX has with the publication is to create a list of criteria that an exchange must meet to issue digital assets, while supporting financial institutions that try to do so.
Rashed Al Blooshi, the CEO of ADX, commented that,
“The exchange continues its efforts to manage the transition from conventional assets to more encrypted assets, which are witnessing major and rapid development in the region.”
In his statement, he also spoke about how necessary the improvement for the market’s infrastructure truly is, and how the development of regulatory measures will increase the confidence that investors have in the nascent industry. Since ADX is already a member of ISSA Central Securities Depositories Working Group, they will be continually involved the progression and inclusion of blockchain technology endeavors.
The United Arab Emirates’ (UAE) regulator for national securities commented in March that they want capital markets to have the ability to launch Initial Coin Offerings (ICOs) by 2019. They have been working on creating the first drafts of the regulations that would govern these sales, since they decided to consider ICOs as securities.
A month earlier, the head of the Abu Dhabi financial regulator said that they want “proper” international regulation for crypto, considering the poor image cast on the industry during losses or theft. Richard Teng, the regulatory head, said,
“This space needs to be properly regulated, otherwise there is the risk of financial crime.”