Abu Dhabi Global Market (ADGM) has released its regulatory framework for spot crypto asset activities, including those undertaken by exchanges, custodians and other intermediaries in ADGM.

The framework will address the full range of risks associated with crypto asset activities, including risks relating to money laundering and financial crime, consumer protection, technology governance, custody and exchange operations.

The launch of the framework follows the successful completion of a public consultation on the introduction of a robust crypto asset regulatory framework by ADGM Financial Services Regulatory Authority (FSRA) last month. According to the official release, the feedback to the public consultation was very positive.

“By introducing a comprehensive and best-in-class regulatory framework, the FSRA is taking a leading role in instilling proper governance, oversight and transparency over crypto asset activities, positioning ADGM as a destination of choice for crypto asset players. Our engagement with fellow global regulators also validated our position that the key risks highlighted have to be addressed for crypto assets to be more widely accepted and institutionalized,” Richard Teng, Chief Executive Officer, FSRA of ADGM, said.

The regulatory framework has taken into account the constructive comments received during the public consultation. A key change involves the implementation of the Daily Value Trading Levy imposed on Crypto Asset Exchanges on a sliding scale basis.

The FSRA has also published its ‘Guidance - Regulation of Crypto Asset Activities in ADGM’, which elaborates ADGM’s approach towards the regulation of crypto asset activities, as well as application form for interested applicants to operate a crypto asset business within ADGM.