United Arab Emirates: Published ADGM Guiding Principles on Digital Asset Regulation

On 13 September 2022, the Financial Services Regulatory Authority of the Abu Dhabi Global Market free economic zone (ADGM), published the Guiding Principles on digital asset regulation and supervision. The Guiding Principles set out five specific principles for crypto regulation: (I) Internationally Recognised Regulatory Framework; (II) Dynamic and Market-Oriented Regulations; (III) Risk-focused and Proportionate Approach; (IV) Cooperation and Shared Responsibility; (V) Delivering High Standards of Quality & Service. The Principles notably set out the requirement to comply with international standards in Anti-Money Laundering (AML) and combating the financing of terrorism (CFT). Further, it sets out that the ADGM’s legislative framework will be based on English Common Law, and that the ADGM will adopt a prudential regulation approach to ensure financial stability, among others.