The Abu Dhabi Securities Exchange has released a paper aimed at creating the infrastructure necessary to accommodate transactions with cryptocurrency-based assets and facilitate the implementation of distributed ledger technologies in the emirate. The platform wants to support financial institutions in their efforts to introduce services related to innovative investment instruments.
The paper, in which the Abu Dhabi Securities Exchange (ADX) sets out its views on a regulatory framework for cryptocurrencies and digital assets, has been produced in cooperation with the emirate’s Central Securities Depository. The organisation has been tasked with examining the phenomenon and participate in the creation of a safe and efficient environment for both the issuers of these assets and potential investors. The document has been prepared under the auspices of the International Securities Service Association.
According to a report by WAM, the state-run news agency of the United Arab Emirates, the exchange has been working to identify the “technical and operational criteria required to issue cryptoassets”, as the new asset class is seeing rapid development in the region. ADX also wants to provide a reliable reference for financial institutions trying to manage the transition from traditional assets to cryptocurrency-related instruments.
Commenting on the release, the chief executive of ADX, Rashed Al Blooshi, noted the importance of upgrading Abu Dhabi’s existing financial market infrastructure. He also highlighted the need to incorporate comprehensive standards of governance within traditional systems in order to improve the quality of the infrastructure, prevent market fragmentation and increase investor confidence.
“Financial market infrastructure plays a pivotal role in supporting crypto markets, offering investor protection, preventing market fragmentation, as well as making it possible for financial institutions to provide advanced services in the field of cryptoassets,” Al Blooshi pointed out. He added that ADX is embracing innovative technologies and is constantly looking to capitalize on fintech advancements, particularly those regarding cryptoassets.