Regulatory Alerts2025-01-01
Consultation Paper No. 10 of 2025 – Proposed Framework for the Staking of Virtual Assets
The Financial Services Regulatory Authority of Abu Dhabi Global Market proposes a regulatory framework requiring Authorised Persons holding client virtual assets to obtain specific permissions before engaging in Proof-of-Stake activities. The rules distinguish between discretionary staking by asset managers and instruction-based staking by custodians, while excluding solo staking and pure technical service providers from the regulatory perimeter. Compliant entities must conduct due diligence on service providers and smart contracts, provide detailed client disclosures, and obtain prior non-objection from the regulator, though mandatory insurance for slashing risks is currently deferred.
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