Abu Dhabi Global Market’s Registration Authority is inquiring about a legislative framework for distributed ledger technology (DLT). Their focus is on crucial aspects such as disclosures, liquidation, and governance structures that must be addressed within the framework. The ADGM is actively seeking answers and looking for solutions to these issues to ensure a comprehensive and practical legislative framework for DLT.
The proposed legal framework has generated interest among stakeholders, as ADGM has received inquiries regarding using ADGM foundations for DLT purposes and issuing non-regulated utility tokens.
Although foundations are inherently suitable for DLT projects, the existing foundations’ regimes in ADGM impose unfavorable limits for DLT projects due to characteristics and needs within those regimes.
In the United Arab Emirates, the Abu Dhabi Global Market (ADGM) is a financial center that issues licenses to businesses providing services linked to virtual assets. Instead of working as a regional financial watchdog, the ADGM focuses on resolving concerns connected to service kinds and governance.
A new regulatory framework has been developed to entice Bitcoin and Web3 industry investors. This is part of Abu Dhabi’s plan to become a cryptocurrency center and a global leader in blockchain technology adoption.
Abu Dhabi’s digital ecosystem, Hub71, has initiated a $2 billion program to promote Web3 and blockchain technologies in the Middle East. The program’s main objective is to establish Abu Dhabi as the regional hub for new company creation.
The Consultation Paper, authored by Hub71, will benefit individuals who lead or establish a DLT project and engage in digital asset-related activities, their legal advisors, and stakeholders in the DLT sector. Anyone participating or organizing in the DLT sector will also find the paper valuable.