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The Financial Services Authority (FSRA), the regulatory arm of Abu Dhabi Global Market (ADGM) based in Abu Dhabi, has implemented amendments to its digital asset regulatory framework. The amendments will be effective immediately, as per the press release. The implementation of these amendments follows extensive industry engagement and feedback received on Consultation Paper No. 11 of 2024. The Amendments revise how virtual assets are accepted The amendments introduce revisions to how virtual assets are accepted in ADGM. There are also amendments to capital requirements and fees for authorized persons and firms who want to conduct regulated activities in the virtual asset space. The amendments also introduce a specific product intervention power in relation to VAs. It also reiterates that ADGM does not allow the usage of the prohibition of using privacy tokens and algorithmic stablecoins within ADGM. The amended regulation defines a Virtual Asset as neither issued nor guaranteed by a governmentor central bank of any jurisdiction and fulfills the above functions only by agreement within the community of users of the Virtual Asset, which is distinguished from Fiat Currency and E-money. It is also not a specified investment, fiat-referenced token, or spot commodity. For example, the new definition of an accepted virtual asset is a virtual asset that meets the requirements prescribed by the rules made by the regulator per section 5A(1)(b)(I). This is slightly different from its previous definition, which read, ” an Accepted Virtual Asset that, in the opinion of the regulator, meets the requirements for an Authorised Person conducting a Regulated Activity in relation to Virtual Assets.” Virtual asset custody can be carried out by Banks Finally, the amendments expand the scope of investments in which Venture Capital Funds may invest. Emmanuel Givanakis, Chief Executive Officer of ADGM’s FSRA, noted that these changes are significant in…

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Filed under: News - @ June 10, 2025 5:27 pm