Abu Dhabi: Financial Services Authority Is Working On Cryptocurrency and ICO Regulations
The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) is preparing a set of regulations for cryptocurrencies, Initial Coins Offerings (ICOs) and cryptocurrency exchanges, according to an official announcement published Sunday, Feb. 11.
While developing the regulations, FSRA intends to cooperate with relevant qualified institutions and individuals involved in the cryptocurrency industry, according to the announcement. The financial regulator did not specify when the regulations are expected to be released.
FSRA previously issued a warning about the risks of ICOs and cryptocurrencies on Oct. 9 2017, when the financial regulator started considering developing its own set of cryptocurrency regulations.
In the announcement ADGM acknowledges the global demand for digital currencies, stating that “virtual currencies, although not legal tender, are gaining interests globally as a medium of exchange for goods and services.”
On Feb. 4, 2018 the UAE Securities and Commodities Authority (SCA) issued a document warning investors, noting that they must assume all risks associated with investing in digital tokens, since this kind of fundraising activity is not yet regulated by the UAE.