Abu Dhabi Unveils Regulatory Framework for DAOs, Boosting Digital Asset Innovation
Summary:
Abu Dhabi, in its pursuit to become a leader in the digital asset innovation, has launched a regulatory framework for Decentralized Autonomous Organizations (DAOs) and other digital ledger entities. This enables DAOs to legally operate and distribute tokens to their members, enhancing clarity for businesses within the digital asset realm. The Abu Dhabi Global Market (ADGM) spearheaded this initiative, advocating for improved governance and honoring the sector's decentralized nature. This move is set to position Abu Dhabi alongside Dubai as a key player in the cryptocurrency market.
The United Arab Emirates' Abu Dhabi, known for its substantial population, has officially unveiled a regulatory structure for Decentralized Autonomous Organizations (DAOs) and similar digital ledger operations. This move underlines its substantial commitment to being the premier location for digital asset innovation across the Middle East. The fresh regulations will permit DAOs to function within the law, also giving them the ability to allot tokens to participants, thus ensuring that businesses involved in the digital asset sector can operate with certainty. Through this, Abu Dhabi aims to rival Dubai as a dominant player in the cryptocurrency market, reflecting a larger drive to cultivate blockchain and extensive digital asset projects.
Distributed ledger technology, or DLT, forms the foundation of blockchain networks, containing and preserving information across multiple ledgers in one network to safeguard data truthfulness and protection.
The Abu Dhabi Global Market (ADGM) is leading the way with the introduction of the DLT Foundations Regime, which is based on comprehensive consultations with those in the industry. This framework is expected to not just set global standards, but also overhaul the blockchain sector by significantly advancing efficiency and clarity according to a released statement.
ADGM's Chairman, His Excellency Ahmed Jasim Al Zaabi, in the statement, underscored Abu Dhabi's fast-paced transformation into a global center for digital asset pioneers, conveying a strong commitment to cultivating an environment conducive to technological advancements.
The efforts by ADGM are not only valuable in highlighting Abu Dhabi's identity as a future-focused legal jurisdiction but also beneficial to the wider Web3 community. By encouraging improved governance and recognizing the decentralized ethos of this sector, Abu Dhabi is setting a benchmark for international financial hubs.
In alignment with Dubai's attempts to warmly welcome the digital assets sector, Abu Dhabi is striving to position itself as a significant contender in the cryptocurrency hub race. The Abu Dhabi regulation framework offers a dependable, clear, and unique option for corporations seeking regulatory protocols different from those found in other parts of the world.
Cointelegraph previously reported that a digital-sector-specific free zone, accommodating service providers in the expanding technologies field including metaverse, blockchain, utility tokens, virtual asset wallets, nonfungible tokens, DAOs, decentralized applications and other Web3 connected businesses, was inaugurated recently in Dubai.
Published At
11/3/2023 11:27:33 AM
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