Abu Dhabi Securities Exchange (ADX) To Explore Blockchain Technology Benefits
Earlier this month BitcoinExchangeGuide had reported that a new thought paper from Abu Dhabi Securities Exchange (ADX) was issued for digital assets and other crypto related topics. The paper primarily focuses on cryptocurrency and blockchain infrastructure, particularly how it pertains to the issuance of digital assets. 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.
In a month, the exchange has already made progress. UAE has taken measures to regulate Initial Coin Offerings(ICOs) and the entities working with cryptos. Even, UAE’s Securities and Commodities Authority (SCA) has established a plan to regulate crypto activities.
ADX should upgrade its infrastructure with DLT solutions and incorporate clear standards of governance before introducing any crypto offering, Rashed Al Blooshi, the exchange chief executive officer (CEO), explained. Crypto assets can help ADX offer optimized and innovative services to its clients and to bring new players to the market, the exchange boss added.
“ADX continues its efforts to manage the transition from conventional assets to more encrypted assets, which are witnessing major and rapid development in the region. Financial market infrastructure plays a pivotal role in supporting crypto markets, offering investor protection, preventing market fragmentation, as well as making it possible for financial institutions to provide advanced services in the field of crypto-assets,”
Last month 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.