United Arab Emirates: Opened consultation on Regulatory Framework for the issuance of Fiat-Referenced Tokens

On 20 August 2024, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) opened a consultation on a proposal for a Regulatory Framework for the issuance of Fiat-Referenced Tokens (FRT) until 3 October 2024. The proposal regulates the issuance of FTS and outlines operational restrictions and requirements for FRT issuers. The proposal defines an FRT as a digital asset whose transfer and storage is achieved electronically through the use of distributed ledger technology. The FSRA is seeking to adopt a regulatory approach for FRT issuance aligned with current practice in leading jurisdictions such as Singapore, Hong Kong and New York.