ADGM Establishes Comprehensive Regulations for Web3 Entities, Aims to Boost Blockchain Presence
Summary:
The Registration Authority of Abu Dhabi Global Market (ADGM) has established a comprehensive regulatory framework for Web3 entities, including blockchain foundations and decentralized autonomous organizations (DAOs). The new regulations require these entities to submit a detailed charter of initial assets, governance, and potential token issuance. The ADGM, which operates under English law, launched these regulations as a part of its strategic move to enhance visibility in the digital asset and blockchain sector.
The Registration Authority of the Abu Dhabi Global Market (ADGM) has established a detailed regulatory framework for Web3 entities. This pioneering structure, said to be the first of its kind, has been specifically designed for such organizations. The stronghold of these new regulations, known as the Distributed Ledger Technology (DLT) Foundations Regulations, encompasses the functioning of blockchain foundations, Web3 bodies, decentralized autonomous organizations (DAOs), and traditional foundations venturing into DLT. In essence, blockchain foundations offer various forms of assistance for a blockchain, while being indirectly involved with it.
The guidelines facilitate the establishment of a "DLT Foundation" by submitting a charter holding information about the foundation's inaugural assets, governance principles, potential token issuance, and the organization's white paper. It also mandates the provision of a comprehensive document called a DLT Framework.
The foundation, however, is obligated to disclose its key figures' identities, which would remain confidential, and must adopt a name ending with "DLT Foundation". The foundation, governed by a council of two to 16 members for administrative reasons, must abstain from activities within the jurisdiction of the ADGM Financial Services Regulatory Authority. Token holders will be recognized as beneficiaries.
The regulations rolled out on October 2, becoming public on November 2. The initial application fee for registration has been designated at $1,470. The ADGM, which initialised cryptocurrency regulations in 2018 and commenced in 2015, functions under English law.
The ADGM chairperson, Ahmed Jasim Al Zaabi, communicated in an emailed statement that the introduction of these regulations is a deliberate plan to enhance ADGM's standing in the blockchain and digital asset sector. He believes that by revolutionizing the landscape of blockchain and Web3, they are shaping a future enhanced by superior transparency and efficiency.
In February, ADGM resident Hub71 initiated a $2 billion venture named Hub71+ Digital Assets to stimulate Web3 development, with the First Abu Dhabi Bank also playing a role in the venture. Other crypto service providers and foundations in the ADGM and Abu Dhabi also contribute to the burgeoning sector.
Published At
11/2/2023 7:00:00 AM
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