The international financial free zone of Abu Dhabi has introduced a regulatory framework to regulate Web3 organizations.
The board of directors of the Abu Dhabi Global Market (ADGM) has presented regulatory standards for all organizations and companies working with distributed ledger technologies (DLT).
According to the document, Web3 organizations can establish DLT (distributed ledger technology) foundations, via which they’ll be able to provide financial and other types of support to blockchain projects, without directly participating in them.
Under the new rules, to create a DLT foundation, organizations need to submit to the regulator:
- information about the fund’s initial capital;
- information on the management structure, including the names of key individuals in the company;
- the project’s white paper and technical documentation;
- data on tokenomics, if token issuance is planned.
The foundation will require a council of between two and 16 members for management and administrative purposes. The foundation won’t be allowed to carry out activities that require a license from the ADGM Financial Services Regulatory Authority. Token holders will be treated as beneficiaries.
The UAE authorities are actively developing the digital economy sector and preparing the legal framework. The activities of crypto companies in the free economic zone of the Dubai International Financial Centre (DIFC) have recently been regulated by special legislation.
Not long ago, Brad Garlinghouse, CEO of Ripple, announced that the Dubai Financial Services Authority (DFSA) officially approved the use of XRP in the DIFC zone.
