Out-Law News | 05 Mar 2020 | 9:14 am |
The amendments, made to the Financial Services and Markets Regulations 2020, mean that activities carried out in operating a cryptoasset business in the financial centre are no longer regulated under a bespoke framework.
The new rules reflect terminology used by the Financial Action Task Force and are now framed within the broader context of other regulated activities in the ADGM.
The changes in terminology include replacing references to cryptoassets with 'virtual assets', and using 'multilateral trading facility' in place of 'cryptoasset exchange'. The new legislation also refers to 'conducting a regulated activity in relation to virtual assets', while all the regulated activities in the legislation now make reference to virtual assets in some way.
Dubai-based Marie Chowdhry of Pinsent Masons, the law firm behind Out-Law, said: "This change is significant as it helps bring the regulation in line with the Financial Action Task Force which does not classify virtual assets as their own category, but rather another asset, comparable to a financial instrument, that is traded. This is another step taken by the ADGM towards positioning itself as a leader in the region for financial technology."
The amendments follow the publication of new guidance on the regulation of digital securities activity by the Financial Services Regulatory Authority in the ADGM earlier this year.
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