Topic: [2018-02-12] Abu Dhabi Financial Regulator Considers Cryptocurrency Framework (Read 144 times)
February 12, 2018, 05:11:41 PM
The tiny nation of Gibraltar is about to implement the world’s first laws governing initial coin offerings
February 12, 2018, 10:34:33 AM
FSRA previously submitted a guidance on supervising ICOs and cryptocurrencies in October of last year. According to the document, cryptocurrencies are commodities which are regulated under Financial Services and Market Regulations (FSMR) only as derivatives. Mining, spot trade and spot transactions of cryptocurrencies are unregulated. Tokens issued in ICOs are considered as securities, where the entire ICO is regulated by FSMR.
The announcement comes a few days after Securities and Authorities Commodity announced that ICO investors are on their own as UAE doesn’t “recognize, regulate or supervise” ICOs.
FSRA elaborated on the topic, “The FSRA notes that virtual currencies, although not legal tender, are gaining interests globally as a medium of exchange for goods and services. However, there are risks and concerns. Given the anonymous and cross-border nature of virtual currency transactions, they are particularly vulnerable to money laundering and terrorist financing risks, as well as other financial crimes.”
The announcement comes a few days after Securities and Authorities Commodity announced that ICO investors are on their own as UAE doesn’t “recognize, regulate or supervise” ICOs.
FSRA elaborated on the topic, “The FSRA notes that virtual currencies, although not legal tender, are gaining interests globally as a medium of exchange for goods and services. However, there are risks and concerns. Given the anonymous and cross-border nature of virtual currency transactions, they are particularly vulnerable to money laundering and terrorist financing risks, as well as other financial crimes.”
February 12, 2018, 06:52:00 AM
The regulator for Abu Dhabi’s international financial center is considering embracive regulations for the cryptocurrency industry, a move that could see exchanges and intermediaries move into the financial zone.
In an announcement on Sunday, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market said it is currently reviewing the development of a regulatory framework with industry firms and relevant authorities.
If established, the regulatory move would establish the international financial sector as friendlier shores for cryptocurrency exchanges and firms.
The regulator said it is:
“[R]eviewing and considering the development of a robust, risk-appropriate regulatory framework to regulate and supervise activities of virtual currency exchanges and intermediaries. In considering such a framework, the FSRA intends to consult and work closely with industry participants and relevant professional bodies.”
The development comes within months of guidelines released by the Abu Dhabi government for cryptocurrencies and ICOs in the capital of the United Arab Emirates (UAE). In October, Abu Dhabi’s financial markets regulator ruled out a “one size fits all” regulatory approach to the sector, separating ICOs as securities and cryptocurrencies as commodities.
It’s a marked turn of events for the development of the sector in the region after bitcoin ducked a prohibitive ban by the UAE’s central bank a year ago. Yesterday’s announcement follows a public warning on investments risks in ICOs by UAE’s Securities and Commodities Authority (SCA), the capital’s financial markets watchdog.
In its announcement, the FSRA also touched on the advent of cryptocurrencies as a medium of exchange. Friendly regulations could see the use of cryptocurrencies in payments, if only within the international financial center of over 40 companies.
It said:
“The FSRA notes that virtual currencies, although not legal tender, are gaining interest globally as a medium of exchange for goods and services.”
Meanwhile, the central banks of the UAE and Saudi Arabia are jointly working on the development of a cryptocurrency that could soon see cross-border transactions using a blockchain-based cryptographic token. Elsewhere in the region, the likes of Dubai is exploring the use of blockchain technology in sweeping measures in areas including the government, a state cryptocurrency, a citywide payments system and even its airport.
https://www.ccn.com/bitcoin-regulation-abu-dhabi-financial-regulator-considers-cryptocurrency-framework/
In an announcement on Sunday, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market said it is currently reviewing the development of a regulatory framework with industry firms and relevant authorities.
If established, the regulatory move would establish the international financial sector as friendlier shores for cryptocurrency exchanges and firms.
The regulator said it is:
“[R]eviewing and considering the development of a robust, risk-appropriate regulatory framework to regulate and supervise activities of virtual currency exchanges and intermediaries. In considering such a framework, the FSRA intends to consult and work closely with industry participants and relevant professional bodies.”
The development comes within months of guidelines released by the Abu Dhabi government for cryptocurrencies and ICOs in the capital of the United Arab Emirates (UAE). In October, Abu Dhabi’s financial markets regulator ruled out a “one size fits all” regulatory approach to the sector, separating ICOs as securities and cryptocurrencies as commodities.
It’s a marked turn of events for the development of the sector in the region after bitcoin ducked a prohibitive ban by the UAE’s central bank a year ago. Yesterday’s announcement follows a public warning on investments risks in ICOs by UAE’s Securities and Commodities Authority (SCA), the capital’s financial markets watchdog.
In its announcement, the FSRA also touched on the advent of cryptocurrencies as a medium of exchange. Friendly regulations could see the use of cryptocurrencies in payments, if only within the international financial center of over 40 companies.
It said:
“The FSRA notes that virtual currencies, although not legal tender, are gaining interest globally as a medium of exchange for goods and services.”
Meanwhile, the central banks of the UAE and Saudi Arabia are jointly working on the development of a cryptocurrency that could soon see cross-border transactions using a blockchain-based cryptographic token. Elsewhere in the region, the likes of Dubai is exploring the use of blockchain technology in sweeping measures in areas including the government, a state cryptocurrency, a citywide payments system and even its airport.
https://www.ccn.com/bitcoin-regulation-abu-dhabi-financial-regulator-considers-cryptocurrency-framework/
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