Abu Dhabi Global Market (ADGM), the emirate’s free zone, revealed a session paper on Monday titled “Proposals for enhancements to capital markets and virtual assets in ADGM.” The doc comprises draft tips that, amongst different asset courses, cowl nonfungible token (NFT) buying and selling. The paper proposes that corporations with a license from the free zone’s monetary regulator be allowed to facilitate NFT buying and selling.
Along with sections devoted to conventional monetary devices, the doc comprises a little bit greater than a web page on digital belongings and NFTs. In this part, the free zone’s chief regulator, the Financial Services Regulatory Authority (FSRA), describes NFTs as mental property somewhat than “specified investments or financial instruments.” It additionally proposes to permit multilateral buying and selling services (MTFs) and Virtual Asset Custodians (VAC) to function NFT marketplaces.
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The doc additionally mentions that transactions in NFTs might set off the requirement to adjust to ADGM’s Anti-Money Laundering (AML) and Sanctions Rules.
At this level, because the doc specifies, FSRA shouldn’t be proposing a proper regulatory framework for NFTs. The session paper is open for remark till May 20, and encourages stakeholders to share their ideas on a number of main questions, for instance, “What types of NFTs should be permitted to trade upon MTFs?” and “How would it be best to integrate third-party NFT registries?”
ADGM is likely one of the United Arab Emirates’ three main free financial zones that host digital asset service suppliers (VASPs), and the primary one to get its regulatory framework again in 2018. Last week, although, it was one other of UAE’s free zone — Dubai Multi Commodities Centre (DMCC) — that made the headlines by granting its freshly legislated crypto license to FTX and Binance exchanges.