Regulatory Alerts2020-02-26
Guidance on Regulation of Digital Securities Activities in ADGM
The Financial Services Regulatory Authority of the Abu Dhabi Global Market issued this guidance to establish a comprehensive regulatory framework for Digital Securities, defining them as digital assets meeting traditional security characteristics under the Financial Services and Markets Regulations 2015. The document mandates that issuers, market intermediaries, and virtual asset operators obtain appropriate licensing or recognition to conduct primary offerings, secondary trading, custody, and settlement activities within the jurisdiction. It further specifies prospectus content requirements, technology governance standards, market abuse rules, and clear pathways for conventional financial institutions to expand their regulated activities into the digital securities space.