Abu Dhabi’s proactive regulatory bodies help them stay ahead in the race
- ADGM to list more exchanges centered around cryptocurrency
- Watch Dogs to follow a rigorous approach to issue licenses in regards to businesses around cryptocurrencies.
- It was expressed that AGDM was built based on the demand of market players, who wanted the industry to be safe & at the same time to be liberal & transparent in nature
While the rest of the world, particularly the west, seems to be wrapping their heads around cryptocurrencies, understanding them, defining & clinching to bring crypto-centric businesses under a framework, the middle east is willingly constructing conducive frameworks to stay ahead in the race.
Abu Dhabi Global Market (ADGM) presently has 3 crypto-centric exchanges including eToro that are licensed operators providing a platform to invest in cryptocurrencies to the locals. According to the regulators, 3 more exchanges are planning for a soft launch into the markets in the first half of 2022 while most others are waiting for approvals from the governing body.
The chief executive of the Financial Services Regulatory Authority (FSRA), Emmanuel Givanakis stated that more launches were expected to be scheduled in the first half of next year, providing they get a final green signal from the FSRA. Furthermore, 6 other companies, including both exchange & custodial businesses, were interested in operating in the area & are looking forward to submitting their applications.
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According to the Chief Executive, the regulators are opting for a rigorous approach to shortlist & validate businesses, thereby issuing licenses so that it can ensure that the operational entities are of great quality in their services.
The regulatory body has continued to update its terms & stringints since it first introduced a framework for digital assets, thereby upgrading its overall adaptability. The regulatory body has especially focused on making the sector more resistant to extreme risks.
According to Emmanuel, consequently, it has made the financial hub more attractive to both local & international businesses & start-ups.
It is also reported that some of the big players like Kraken & Huobi have taken up the initiatives to set up their bases in the middle east. Givanakis also pointed out that both the players & regulators work together, indicating the extent to which FSRA is adaptable & attractive.
The Chief of FSRA also pointed out that the west had been complacent with guidelines towards cryptocurrencies and was introducing frameworks to push them into the regulatory gambit of soughts. However, the ADGM was built as there was a genuine demand from players who wanted the industry to be safe, free & transparent with its operations in context to crypto businesses.
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