This week the spotlight is on regulatory developments in the Abu Dhabi Global Market, where their Financial Services Regulatory Authority has launched its framework to regulate spot crypto asset activities, including those undertaken by exchanges, custodians and other intermediaries in the Global Market. The framework has been introduced following the conclusion of a public consultation which was launched by the Global Market’s Financial Services Regulatory Authority and ended on 28 May 2018.

The framework is designed to address the full range of risks associated with crypto asset activities, including money laundering and financial crime, consumer protection, technology governance, custody and exchange operation risks. As a result of feedback received during the consultation, several refinements have been made to the regulatory framework. One of the most significant changes is the implementation of a Daily Value Trading Levy which will be imposed on Crypto Asset Exchanges on a sliding scale.

In addition, the Financial Services Regulatory Authority has published its Guidance-Regulation of Crypto Asset Activities in the Global Market and application form for interested applicants to operate a crypto asset business in the Global Market. The Guidance elaborates on the Market’s approach towards the regulation of crypto asset activities and is a useful resource for interested applicants.