Abu Dhabi Global Markets (ADGM) Seeks Feedback on Proposed DLT Legal Framework
According to reports, the Abu Dhabi Global Markets (ADGM) Registry is seeking feedback on its proposed Distributed Ledger Technology (DLT) legislative framework, with the goal of d
According to reports, the Abu Dhabi Global Markets (ADGM) Registry is seeking feedback on its proposed Distributed Ledger Technology (DLT) legislative framework, with the goal of disclosure, liquidation, and governance structures. ADGM is an international financial center within the United Arab Emirates (UAE) and has developed a customized licensing system for virtual asset service providers regulated by its financial regulatory authorities.
Abu Dhabi Global Market Registry is seeking feedback on its proposed legislative framework for distributed ledger technology
The Abu Dhabi Global Markets (ADGM) Registry is seeking feedback on its proposed Distributed Ledger Technology (DLT) legislative framework. This new framework aims to cover disclosure, liquidation, and governance structures. As an international financial center within the United Arab Emirates (UAE), the ADGM has developed a customized licensing system for virtual asset service providers (VASPs) that are regulated by its financial regulatory authorities.
This article will provide an overview of the proposed DLT legislative framework and what it means for VASPs operating within the ADGM jurisdiction.
Overview of the Proposed DLT Legislative Framework
The ADGM has recognized the need for a legal framework that can govern the use of distributed ledger technology. This framework proposes to establish a set of rules that will promote transparency, stability, and protection for both investors and VASPs. The proposed framework covers three main areas:
Disclosure
Under the proposed framework, VASPs will need to disclose specific information about their operations to ensure transparency. This includes disclosing the names of the VASPs’ key individuals, details of the virtual assets they handle, and any material conflicts of interest. The ADGM believes that disclosure is crucial to ensure operational transparency, which is essential for investor protection.
Liquidation
The proposed DLT legislative framework also covers liquidation. This means that VASPs will need to have a clear and efficient plan in place for how they would manage their assets if they were to become insolvent. This is important to ensure that investors are protected in the event of a VASP’s insolvency.
Governance Structures
The final area that the proposed framework covers is governance structures. This means that VASPs must establish clear internal governance structures that promote transparency and accountability. This includes putting in place policies and procedures that outline how conflicts of interest are managed, how information is disclosed and how the VASP manages incidents such as cyber-attacks.
What Does This Mean for VASPs in the ADGM?
If the proposed DLT legislative framework is passed, VASPs operating in the ADGM jurisdiction will need to ensure that they comply with the new regulatory requirements. This means that VASPs will need to ensure that they have transparency in their operations, have a clear and efficient plan in place for managing their assets, and have appropriate governance structures.
It is important for VASPs to take the proposed DLT legislative framework seriously as failure to comply with the new regulatory requirements could result in regulatory action. This could include fines or even revocation of the VASP’s license to operate within the ADGM jurisdiction.
Conclusion
The ADGM’s proposed DLT legislative framework aims to promote transparency, stability, and protection for both investors and VASPs. This new framework covers three main areas, including disclosure, liquidation, and governance structures. If the framework is passed, VASPs will need to ensure that they comply with the new regulatory requirements or face regulatory action.
FAQs
What Is the ADGM?
The Abu Dhabi Global Markets (ADGM) is an international financial center within the United Arab Emirates.
What Are VASPs?
Virtual Asset Service Providers (VASPs) refers to individuals or entities that provide services for users to buy, sell, exchange, and store virtual assets.
Why Is Governance Important for VASPs?
Appropriate governance structures help to ensure transparency and accountability within the VASPs’ operations. This is important for investor protection and to prevent misconduct or potential fraud.
This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/21154/
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Recommended articles
-
Alchemy Pay Announces a Transition to Management Advisory Committee
It is reported that Alchemy Pay officially announced the transition from centralized management to management advisory committee management. According to the o…
-
Horizen conduct a scheduled stress test on Yuma Testnet
On March 5, Horizen, a blockchain network that supports zero knowledge, announced that it would conduct a scheduled stress test on Yuma Testnet in the week beginning on March 6, during which potential network downtime might occur. The purpose of the test is to check the robustness and error handling capability of the EON platform by increasing the on-chain activities beyond the normal conditions. Yuma Block Browser may display a large number of transactions in the block, and may be temporarily interrupted due to abnormally high traffic. The blockchain network Horizen will conduct a stress test on Yuma test network next week Analysis based on this information:Horizen, a well-known blockchain network that supports zero knowledge, will conduct a scheduled stress test on the Yuma Testnet during the week beginning on March 6. The network has informed its users that this test may result in potential network downtime, wherein the Yuma Block Browser may display a large number of transactions in…
-
Decentralized Exchange Liquidity Aggregator 1inch Network Supports zkSync Layer2 Solution for Ethereum Networks
According to reports, the decentralized exchange liquidity aggregator 1inch Network has added support for zkSync, a Layer2 solution for expanding Ethereum networks.
1 inch Network -
Overview of YIP-72 and the Launch of yETH
On April 21st, according to the snapshot page, the revenue aggregation protocol Year community initiated a vote for YIP-72 to launch yETH. The proposal aims to approve the design s
-
Opportunities for Web3: $100M Web3 Ecological Fund Launched in Hong Kong
On April 14th, at the \”MetaEra x BitMart Session: Where are the Opportunities for Metaverse\” sub forum of the 2023 Hong Kong Web3 Carnival, Mr. Huang Junlang, CEO of Web3Hub Fund i
-
Malicious Activity on EOA Address Detected: A CertiK Monitoring Report
According to reports, according to CertiK monitoring, there is malicious activity on an EOA address (0xfFBAF49bF8580A3ADB9BA28F46Dae6631e2e2c58). If the user accidentally grants ac
-
#Damus Launches v1.4.0: A Revolutionary Update To The Nostr-Based Open Social App
According to reports, Damus, an open social app based on the Nostr protocol, tweeted that v1.4.0 had been launched in the Apple App Store. This version upgrade includes support for
-
#The Whale That Shook the Cryptocurrency Market: The ETH/STOCH Liquidity Shock
On April 16th, according to Twitter user residue monitoring, more than 40 minutes ago, a giant whale removed $48 million in ETH/STOTH liquidity from Curve and subsequently transfer
-
Decentralized Indexing Protocol, The Graph Proposes Gradual Increase in Indexing Reward on L2 Network
On April 23rd, the decentralized indexing protocol The Graph community proposed a proposal to gradually increase the indexing reward of 5% on L2 to 100%, and proposed a timetable a
-
US Regulators Consider Holding Securities Under Signature Bank and Silicon Valley Bank to Facilitate Sale
According to reports, US regulators are considering holding securities under the names of Signature Bank and Silicon Valley Bank that have fallen below their purchase price, a move that will remove one of the possible obstacles to selling these two banks. According to people familiar with the matter, this is a routine practice after the Federal Deposit Insurance Corporation (FDIC) took over the bank, mainly facilitating the conclusion of acquisition transactions. Because if it involves assets with declining value, it will be more difficult to sell the relevant banks. People familiar with the matter said that the relevant asset size of Signature may be between $20 billion and $50 billion, and that of Silicon Valley banks may be between $60 billion and $120 billion. Both Silicon Valley banks and Signature have invested in bonds at low interest rates, and the value of these bonds has plummeted as the Federal Reserve has raised interest rates several times over the past year…
-
USDC Treasury Burn 200 Million Tokens
According to the report, Whale Alert data showed that at 11:00 Beijing time today, USDC Treasury cast 200000000 USDCs and then transferred them to Coinbase. Af…
-
Cryptocurrency Investors Beware: Hacking Puts 30% of Americans at Risk
It is reported that according to the latest research report from Kaspersky, a network security company, it is estimated that about 30% of American cryptocurrency investors have bec
-
Circle’s USDC Stablecoin Gains Ground in the Crypto Market
It is reported that, according to official data, from February 9 to February 16, Circle issued a total of US $9.7 billion of USDCs and redeemed US $9.6 billion…
-
Signature Bank Takeover: A Message Against Encryption?
On March 14, Barney Frank, a member of the Board of Directors of the Crypto Friendly Bank Signature Bank and a former US congressman, said that the sudden announcement of the takeover of Signature by the US regulators on Sunday night shocked the executives of the bank, Signature executives have explored “all ways” to improve the status quo, including finding more capital and evaluating the interests of potential acquirers. He said that by Sunday, the outflow of deposits had slowed, and executives believed that they had stabilized the situation. On the contrary, the senior management of Signature has been immediately dismissed and the bank closed on Sunday. Frank believed that part of the reason for this was that regulators wanted to send very strong anti-encryption messages, and said that “the reason why we became a typical representative was that there was no insolvency in the fundamentals”. Member of the Board of Directors of Signature: the bank is not insolvent, is…
-
What is a Qtum Full Node Wallet
What is a Qtum Full Node Wallet? In the Qtum network, users can manage their di
-
Celer Network’s cBridge Expands its Cross-Chain Payment Network with Swarm Token (BZZ) Support
It is reported that cBridge, a cross-chain payment network launched by Celer Network, announced its support for Swarm Token (BZZ), a decentralized storage network. Users can now provide centralized storage and hosting services for Swarm Token (BZZ) between Ethereum and BNB Chain through cBridge. Celer’s cross-chain payment network cBridge announced support for Swarm Token (BZZ) Analysis based on this information:Celer Network’s cBridge has expanded its cross-chain payment network by announcing its support for Swarm Token (BZZ), a decentralized storage network. This recent development fuels the use of decentralized applications and blockchain technology by allowing users to provide centralized storage and hosting services for Swarm Token (BZZ) between Ethereum and Binance Chain (BNB) through cBridge. Swarm Token (BZZ) enables users to share and store their data by utilizing decentralized storage technologies such as peer-to-peer networks, ensuring better privacy, and eliminating the need for intermediaries. The users of Swarm Token (BZZ) can enjoy zero data loss, low latency, and fast data access…