Recently, it has been reported that the Registration Authority of Abu Dhabi Global Market (ADGM) is actively seeking answers regarding the proposed legislative framework for distributed ledger technology (DLT). Specifically, the authority is targeting disclosures, liquidation, and governance structures to be addressed within this framework.
The proposed legal framework has generated interest among stakeholders, as ADGM has received inquiries regarding the use of ADGM foundations for DLT purposes and the issuance of non-regulated utility tokens.
However, even though foundations are naturally well-suited for DLT projects, certain features and requirements within ADGM’s current foundations’ regimes impose constraints that are deemed undesirable for DLT projects.
The Abu Dhabi Global Market (ADGM) is a financial hub in the United Arab Emirates (UAE) that specializes in providing licenses to companies offering services related to virtual assets. The ADGM focuses on addressing issues related to service types and governance rather than acting as the financial watchdog for the area.
This recently proposed legal framework aims to set up features that may be attractive to investors working within the cryptocurrency niche and Web3. Abu Dhabi is doing this to facilitate the adoption of blockchain technology, as it also aims to become a cryptocurrency hub in the near future.
Earlier, Hub71, the tech ecosystem of Abu Dhabi, announced the launch of a $2 billion project to support Web3 and blockchain technology in the region. This initiative aims to facilitate business growth in the Middle East and establish Abu Dhabi as a leading hub for startup businesses in the area.
The publication states that everyone running or developing DLT initiatives, anyone involved in digital asset-related activities and their legal advisers, and anyone involved in the DLT sector, including participants, organizations, and stakeholders, would find this Consultation Paper useful.
