Abu Dhabi Securities Exchange to Create Infrastructure for Cryptocurrency Assets
The Abu Dhabi Securities Exchange has released a paper directed at making the infrastructure necessary to accommodate transactions with cryptocurrency-based assets and ease the implementation of distributed ledger technologies in the emirate. The platform wishes to encourage financial institutions in their attempts to introduce services linked to innovative investment instruments.
The organization has been tasked with examining the phenomenon and participate in the creation of a safe and efficient environment for both the issuers of the assets and possible investors. The document has been prepared under the auspices of the International Securities Service Association.
According to a report by WAM, the state-run news bureau of the United Arab Emirates, the exchange has been working to identify the”operational and technical criteria needed to issue cryptoassets,” since the new asset class is witnessing rapid development in the area. ADX also wishes to provide a reliable reference for financial institutions hoping to handle the transition from conventional assets to cryptocurrency-related instruments.
Commenting on the release, the chief executive of ADX, Rashed Al Blooshi, noted the significance of upgrading Abu Dhabi’s present financial market infrastructure. He also emphasized the need to incorporate comprehensive standards of governance in conventional systems in order to improve the standard of the infrastructure, avoid market fragmentation and boost investor confidence.
“Financial market infrastructure plays a pivotal role in supporting crypto markets, providing customer protection, preventing market fragmentation, in addition to making it possible for financial institutions to provide advanced services within the discipline of cryptoassets,” Al Blooshi pointed out. He added that ADX is embracing innovative technologies and is constantly seeking to capitalize on fintech improvements, particularly those regarding cryptoassets. The exchange is attempting to optimize the benefits offered to its analysts and investors, the executive said.
In the last few years, the area of the Arab Peninsula has been opening up to cryptocurrencies and related products and technology. In January, the Abu Dhabi Global Market, an international financial centre located in the heart of UAE’s capital, announced the adoption of a regulatory framework for cryptocurrency activities such as those performed by trading and custodial platforms.
The watchdog admits the issued tokens as securities. The initiation of the first cryptocurrency exchange enrolled in the United Arab Emirates has been announced this week.