According to Emirates News Agency, a “thought paper” about crypto and distributed ledger technologies was released by Abu Dhabi Securities Exchange (ADX). The paper designates the technical and operational standards that are necessary to release crypto assets and its target audience is especially the financial institutions that are shifting from the conventional asset issuance to encrypted asset issuance.
Chief Executive of Abu Dhabi Securities Exchange, Rashed Al Blooshi, has confirmed that the “thought paper” was released as a response to the growing development of blockchain technology in the region. Additionally, he stated that their regulations must keep up with the transition from old to new finance practices.
“Financial market infrastructure plays a pivotal role in supporting crypto markets, offering investor protection, preventing market fragmentation, as well as making it possible for financial institutions to provide advanced services in the field of crypto-assets,” Blooshi explained. “At ADX, we embrace new and innovative technology and are always looking to capitalize on advancements in FinTech; particularly in crypto-assets to optimize the benefits we offer to our investors and stakeholders.”
Abu Dhabi is conducting a vast number of public and private digital ledger technologies projects in international trade, energy, healthcare, transportation and education and these projects are likely to issue native tokens to their stakeholders and participants, in order to prove their voting right and ownership. However, projects might face with failure if not dealt with diligence properly, since there has been downfall of many other projects in the market. Local regulators must take into consideration that the outdated regulations might not be applied on advanced Financial Technology wings such as DLT and other asset issuances.
ADX thought paper, released in cooperation with he Central Securities Depositories, can be seen as the first step in enabling maximum investor protection in the developing crypto asset market of the region.
This October, the Emirates Securities and Commodities Authority (ESCA) has announced that they are interested in introducing ICOs to capital markets. Additionally, ADX is developing an ICO trade platform as well.
The Emirates Securities and Commodities Authority is drafting the ICO regulation with the support of an anonymous international organization that is alleged to be ISSA, which also helped with the ADX thought paper.
It is encouraging for Coimex Team to see that Blockchain Technology is more seemingly coming into use in different industries all over the world. We are happy to see that people are seeing the potential in this technology and making moves to adapt themselves and their businesses to it.
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