ADGM Virtual Assets - Waystone

      ADGM Virtual Assets

      Operating a Virtual Asset Business in the ADGM

      For those operating in the virtual asset space, Abu Dhabi Global Markets (“ADGM”) is currently the sole option. The pace of virtual asset development and growth is causing regulators around the world to ask themselves what they should do with this new form of “asset”. The ADGM’s regulator, the Financial Services Regulatory Authority (“FSRA”) took the initiative by setting out its regulatory stance. Their innovative virtual assets framework meets both the demand from this developing industry as well as the need for consumer protection.

      What does a virtual assets licence cover?

      The regulations have been designed around the virtual asset framework, with the virtual asset being treated as a “commodity” and, therefore, not deemed to be a “Specified Investment” under the FSRA’s Financial Services and Market Regulations.  Market intermediaries dealing in or managing virtual assets for example, broker dealers, custodians, asset managers, and virtual asset exchanges will need to be licensed/approved by the FSRA. If the applicant firm wishes to undertake business related to both virtual assets and other financial services, it will need to apply for those services in addition to the virtual asset licence.

      Discussions with the FSRA should begin at an early stage if you are considering making an application. You should also be prepared that the application process will require time, documentation and explanation until all concerned are comfortable that the business can “go live”.

      ADGM Unique Offering – Virtual Assets

      Download our ADGM Virtual Asset Regulatory Insight article for details of:

      • The ADGM’s FSRA Virtual Asset Framework
      • The application process
      • Specific requirements for virtual asset exchanges and virtual asset custodians
      • ADGM and FSRA Licence Fees.

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