The regulatory director of the Abu Dhabi and Free Zone Financial Center (DIFC) has called for tightening regulations on currency trading and initial currency support (ICO), recognizing it as a growing global sector.
Abu Dhabi is participating in the world organizational achievement
Almost a year after the issuance of its guidance on currency and initial currency offers (ICOs), which effectively regulate the sector, FSRA shares its regulatory framework with its counterparts around the world. Richard Teng, CEO of FSRA, said:
“This sector must be organized properly, otherwise the risk of financial crime will increase. Every time a currency is stolen or lost, it affects trust in this digital asset class ”
Richard Teng, CEO of FSRA, insists that much has changed over the past few months in the digital world scene. It has shifted from mere digital currency concerns to recognition as a growing sector requiring guidance to develop and encourage it to flourish responsibly. He added:
“We are confident that our comprehensive system – which we have shared with global regulators such as the SEC in the United States, the Treasury, the Bank of England and regulators in Singapore, Hong Kong and Japan – can deal with these risks and gain more confidence in This asset class ”
Report of the United Kingdom Treasury Committee on Digital Currencies
The regulatory body’s comments come in Abu Dhabi as lawmakers in the UK urged the government to set priorities for digital currency regulation and ICO operations in the treasury commission report released today. As the UK Financial Action Committee has several reservations to the digital currency sector. Although they consider that these currencies do not pose a threat to the economy, as stated by Canadian economist Mark Carney earlier. But because of the fact that the market is volatile, the Commission noted that this is not a good thing for novice investors attracted by the amount of profits thanks to price rises witnessed in the digital sector last year.
It should be noted that this is not the first time that the UK has insisted on regulating the digital currency sector. Earlier this year, the Prime Minister and Philip Hammond, the State Treasury Secretary, admitted that even if digital currencies were of structural importance to the national economy, the risks involved were more serious than the United Kingdom would shrug off.
Abu Dhabi Global Market Directive
The Abu Dhabi Global Market (ADGM), one of the first financial centers and commercial districts, provided guidance to digital currency companies in October 2017. It imposed the regulatory framework provided by FSRA to those operating in the region in June. On the other hand, regulations that include terms for trading platform operators and digital preservation companies (portfolio providers) alike see digital currencies as commodities that look like precious metals.
FSRA Capital Markets Manager Wai Lom Kwak said there are many challenges to organizing a purpose that has been designed in a purely organizational way while insisting that authorities are open to the idea in the future. As a member of the R3-led consortium, the Abu Dhabi Financial Market recognized the currency as a payment method earlier this year, although the Saudi Central Bank prohibits the circulation of the form.
The Abu Dhabi regulator said earlier this year that the Financial Services Regulatory Authority believed that digital currencies, although not contrary to the law, were gaining worldwide attention as a means of exchanging goods and services.